Question

Read the listing of substantive procedures for debt and match each with its appropriate primary audit objective.

1.Evaluating whether debt provisions and covenants have been met.

2.Examining copies of the actual signed note payable to determine the correct dollar amount of the liability

3.Confirming debt

4. Performing analytical procedures on debt and related accounts to ensure that all debt is properly included in the period under audit and that some notes have not been omitted.

5.Vouching borrowing and repayment terms

_____Valuation

_____Presentation and disclosure

_____Cutoff

_____Existence

_____Completeness

Answer 1

1. Evaluating whether debt provisions and covenants have been met.

Solution: Presentation and disclosure

Explanation: Presentation and disclosure assertions focus on accuracy, completeness, and occurrence and understand ability

2. Examining copies of the actual signed note payable to determine the correct dollar amount of the liability

Solution: Valuation

Explanation: The assertion focuses that all asset, liability, and balances in equity have been recorded at their proper valuations

3. Confirming debt

Solution: Existence

Explanation: The assertion focuses that account balances exist for assets, liabilities, and equity.

4. Performing analytical procedures on debt and related accounts to ensure that all debt is properly included in the period under audit and that some notes have not been omitted.

Solution: Completeness

Explanation: The assertion is focuses that reported asset, liability, and equity balances have been properly reported.

5. Vouching borrowing and repayment terms

Solution: Cuto ff

Explanation: The assertion focuses that transactions were recorded within the correct reporting period