- July 18, 2023 at 12:01 pm #688494xyzcParticipant
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In readiness for the operational changes, the directors of canopus co decided to restructure the company’s bank loans. As a result, several long term loans were repaid early and a new ten year bank loan of 4.8m was taken out on 1 january 20X5. Repayments of 150000 are due quarterly in arrears which includes interest
Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to canopus co’s bank loans.
The following is what I have typed:
Obtain a schedule of bank loans, cash the schedule and agree to the trial balance and financial statements
Review the schedule of current liabilities and agree that finance costs accruals are included as a year ehd liability
Review the schedule of non current liabilities and agree that bank loans are included as a year end liabilty
Agree the proceeds of 4.8m to cash book and bank statements
Agree the repayments of 150000 to cash book and bank statements
For the new loan taken out, review the loan agreement to confirm the amount of loan , repayments to be made and interset
Is this correctJuly 18, 2023 at 12:31 pm #688497
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