To determine if notes payable is included in the proper period, the auditor should
A) trace the cash received from the issuance to the accounting records.
B) examine duplicate copies of notes to determine whether the notes were dated on or before the balance sheet date.
C) examine duplicate copies of notes for principal and interest rates.
D) trace the individual notes payable to the master file.

Question

Quizplus · Accepted Answer

By examining duplicate copies of notes payable, the auditor can verify whether the notes were dated on or before the balance sheet date. This will ensure that the liabilities are properly classified in the appropriate period. Tracing cash received from the issuance, examining the interest rates, and tracing individual notes payable to the master file may also be part of the audit procedure, but are not specifically relevant to determining if notes payable is included in the proper period.

To Determine If Notes Payable Is Included in the Proper