Audit Program #9 - to prior year's working papers and...

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Apple Blossom Cologne Company Audit Program for Notes Payable and Accrued Interest AP - 9 W/P Ref Initials Existence or Occurrence; Completeness; Rights and Obligations 1. Prepare or obtain schedule of notes payable for the year indicating beginning balances, payments, additions, and ending balances. 2. Examine copies of notes originating during the period or any other related loan agreements vouching data on each note as to payee, original date, original amount, due date, interest rates, collateral, etc. 3. Confirm outstanding balances and all details of each note with the bolder of the note. 4. Vouch payments of and additions to notes payable. Completeness 5. Examine cancelled notes for items renewed or paid off during the year. 6. Examine bank confirmations for unrecorded notes payable. Valuation or Allocation 7. Determine clerical accuracy of schedule obtained in step #1, agreeing beginning balances
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Unformatted text preview: to prior year's working papers and tracing ending balances to trial balance. 8. Obtain or prepare schedule showing accrued interest payable for year indicating beginning balance, payments, accruals, and ending balance. 9. Recalculate footings and test clerical accuracy of schedule agreeing beginning balances to prior year's working papers and tracing ending balances to trial balance. 10. Tie out interest to income statement expense account and trial balance (Q-6). Presentation and Disclosure 11. Determine amount of notes due currently and after one year. 12. Determine whether any assets are subject to lien with respect to long-term debt and note amount of such assets for disclosure. 13. Inquire as to current funding of long-term debt. Assure propriety in accounting for same....
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This note was uploaded on 05/06/2009 for the course ACCT ACCT2 taught by Professor Asifbashir during the Spring '08 term at Aarhus Universitet.

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