Debt
Name 1 document to be requested from your client during planning for debt/notes payable
Loan Summary
Notes Payable Rollforward
Loan Amortization
Loan Cost Amortization
Basic Equity Procedure #1: Read the _______________________ and note equity transactions authorized
If not already done in other audit areas, read the minutes of the board of directors and its committees and note equity transactions authorized.
For debt balances, we agree the TB beginning balances to________ and TB ending beginning balances to________.
Ending: confirmations, debt amortization schedule, loan statements
Name 1 equity account disclosed on the on the face of the financial statements
Common Stock
Preferred Stock
Retained earnings
APIC
The financial statement disclosure reports the debt for both the principal and interest for each of the succeeding ____ fiscal years and in five-year increments thereafter.
Five
What are 2 ways to determine the number of shares held in treasury?
Identify the number of shares held in treasury and confirm with the custodian or examine the certificates in the presence of client personnel.
Name 1 extended procedure for debt (Hint: there are 4 procedures)
1. Test of Clerical Accuracy of Analysis
2. Confirmation of Notes or Financing Arrangements
3. Examination of Canceled Notes and Related Payment
4. Identification of Unrecorded Debt
To test significant transactions included in the analysis of the retained earnings account. The auditor should reconcile changes in retained earnings to __________ for the period and other appropriate transactions included.
net income/loss
Name 1 thing the auditors need to consider when it comes to PPP loans
Auditors need to consider eligibility, use of funds, administrative requirements relating to loan applications and forgiveness, compliance with debt terms, and the related accounting and disclosure requirements.
Name 1 transaction that would affect accumulated other comprehensive income (AOCI) for the period
Consider whether the client has foreign currency items, available-for-sale debt securities, impaired debt securities, hedging activities, or items associated with pension or other postretirement benefits to evaluate the completeness of transactions affecting other comprehensive income.