When there are not numerous transactions involving notes payable during the year, the normal starting point for the audit of notes payable is
A) a schedule of notes payable and accrued interest prepared by the audit team.
B) a schedule of notes payable and accrued interest obtained from the client.
C) a schedule of only those notes with unpaid balances at the end of the year prepared by the client.
D) the notes payable account in the general ledger.

Question

Quizplus · Accepted Answer

When there are not numerous transactions involving notes payable during the year, the normal starting point for the audit of notes payable is the schedule of notes payable and accrued interest obtained from the client. This schedule provides a summary of all notes payable transactions during the year and is prepared by the client's accounting department. The audit team can then use this schedule to verify the accuracy of the notes payable balance in the general ledger and ensure that all notes payable are properly recorded and disclosed in the financial statements.

When There Are Not Numerous Transactions Involving Notes Payable During