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Audit risk
New bank loan
Esk Co has borrowed $2.5m from the bank under a five-year loan. If the loan is not allocated correctly between non-current and current liabilities, this would lead to a classification error with liabilities being misstated.And Auditor response that I wrote is
Reperform the loan amortization schedule and verify that the classification between current and non-current liabilities is accurate and consistent with the loan agreement and relevant accounting standards.
Is the response good ?
Do I get 1 out 1 on it or not sirSorry I cannot look at this – you write one sentence and other will write two – then three – it is “the thin end of the wedge” if I reply and I have been flooded with requests before, and it is not within my remit to answer questions about students’ answers rather than published answers. Thank you for understanding.
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