Which of the following audit tests would provide evidence regarding the balance-related audit objective of existence for an audit of notes payable?
A) Examine due dates on duplicate copies of notes.
B) Examine balance sheet for proper presentation and disclosure of notes payable.
C) Examine corporate minutes for loan approval.
D) Foot the notes payable list for notes payable and accrued interest.

Question

Quizplus · Accepted Answer

Examining corporate minutes for loan approval provides evidence that the notes payable actually exist, as it verifies that the loans were authorized by the company.

Which of the Following Audit Tests Would Provide Evidence Regarding