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Unformatted text preview: AP-6Substantive Audit Program-Notes Payable and Accrued InterestAssertions:Begin with the list of assertions below and add others you think appropriate. Then write your audit program to test those assertions.1.All material debt liabilities are recorded.2.Debt liabilities are properly classified as to their contingent or direct nature.3.Debt liabilities are properly classified as to their current or long-term status.4.Terms, conditions, and restrictions relating to debt are adequately disclosed.Program Steps:1.Existence or occurrence•Confirm notes payable.•Examine duplicate copies of notes for authorization.•Examine board minutes for loan approval.2.Completeness•Examine note paid after year-end to determine whether they were liabilities at the balance sheet date.•Obtain bank confirmation that includes specific reference to the existence of notes payable from all banks with which the client does business.payable from all banks with which the client does business....
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This note was uploaded on 05/16/2011 for the course AC 404 taught by Professor Richardkido during the Spring '10 term at Chaminade University.
- Spring '10