Which of the following is not an objective of the auditor's examination of notes payable?
A) to determine whether internal controls are adequate
B) to determine whether client's financing arrangements are effective and efficient
C) to determine whether transactions regarding the principal and interest of notes are properly authorized
D) to determine whether the liability for notes and related interest expense and accrued liabilities are properly stated

Question

Quizplus · Accepted Answer

The auditor's examination of notes payable aims to determine whether internal controls are adequate, whether transactions regarding the principal and interest of notes are properly authorized and recorded, and whether the liability for notes and related interest expense and accrued liabilities are properly stated. However, evaluating the effectiveness and efficiency of the client's financing arrangements falls outside the scope of the auditor's responsibilities.

Which of the Following Is Not an Objective of the Auditor's