Question

Required information Confirmation Procedures for Debt Read the case and answer the questions that follow Debt transactions and accounts are often few in number but material in dollar amount. Also, lenders are eager to confirm balances, thereby assisting auditors in verifying amounts owed. As such, confirmations provide an easy tool for obtaining excellent evidence on material balances. CONCEPT REVIEW. Confirmations, while not required for debt, are an efficient and effective way for auditors to obtain a high level of third party evidence on material amounts and balances. 1 Confirmations should be drafted on client 2. Confirmations should include a request that the bank confirm borrowings 3 Auditors need to determine whether debt have been met. transactions are examined for all large debt agreements. 5 A copy of debt agreements is typically housed in the file < Prev of 6 Next

Answer 1

S.No 1) 2) 3) Answers Letterhead A11 Covenants Individual Permanent 5)