Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 25

Which of the following questions would an auditor most likely include on a control questionnaire for notes payable?
A) Are assets that collateralize notes payable critically needed for the entity's continued existence?
B) Are two or more authorized signatures required on checks that repay notes payable?
C) Are the proceeds from notes payable used to purchase noncurrent assets?
D) Are direct borrowings on notes payable authorized by the board of directors?