Question

Check my w Required information Substantive Procedures for Debt Read the overview below and complete the activities that follow Debt transactions are often few in number but large in dollar amount. As such, auditors are generally able to substantiate individual transactions rather easily. CONCEPT REVIEW: In an integrated audit of debt, a greater number of transactions are tested using dual purpose tests than for other accounts. Dual purpose tests are tests of both controls and substantive tests done at the same time. The auditor typically performs traditional substantive tests including sending out confirmations and examining copies of notes payable Read the listing of substantive procedures for debt and match each with its appropriate primary audit objective. Examining copies of Prev 1 2 of 4 !!! Score answer > Co search

Answer 1

1. Existence- Confirming debt

It is basically to ascertain that all the debt that is represented are valid claims by banks and third parties and Confirming debt is one of the procedure of this

2. Valuation  -Performing analytical procedures on debt and related accounts to see that all debt is properly included in the period under audit and that some notes have not been omitted

It means to determine that all debt are properly recorded

3. Presentation and Disclosure - Evaluating whether debt provisions and convenants have been met

To ensure that all the debts are presented , classified and disclosed properly as per Financial Reporting framework

4. Cut off - Vouching Borrowing and Repayment terms

To ensure and to take care of Borrowing and Repayment obligations of Debt

5. Completeness -Examing the copies of actual signed note payables to determine the correct dollar amount of Liability

It means to ensure that Debt is properly accounted for in the books of company on proper amount and on timely Business