The audit objective to determine that loans payable in the schedule exist is verified by the tests of balances procedure to:
A) foot the loans payable list.
B) examine the balance sheet for proper disclosure of noncurrent portions.
C) examine duplicate copy of loans for authorisation.
D) recalculate interest expense.

Question

Quizplus · Accepted Answer

Examining duplicate copies of loans for authorisation will confirm that the loans payable in the schedule exist. Footing the loans payable list and examining the balance sheet for proper disclosure of noncurrent portions will not verify the existence of loans payable in the schedule. Recalculating interest expense is irrelevant to this audit objective.

The Audit Objective to Determine That Loans Payable in the Schedule