Solution-What are audit objectives in examining of

What are audit objectives in examining of long-term debt

Assignment Help Accounting Basics

Reference no: EM132918029

Problem - Long-Term Note - You were engaged to examine the financial statements of Ronlyn Corporation for the year ended June 30. On May 1 the corporation borrowed $500,000 from the Second National Bank to finance plant expansion. The long-term note agreement provided for the annual payment of principal and interest over five years. The existing plant was pledged as security for the loan. Due to unexpected difficulties in acquiring the building site, the plant expansion had not begun as planned. To make use of the borrowed funds, on May 16 management invested the $500,000 was invested in securities.

Required -

a. What are the audit objectives in the examining of long-term debt?

b. Prepare an audit program for the examination of the long-term note agreement between Ronlyn and Second National Bank.

Reference no: EM132918029

Questions Cloud

Differences arising from cultural variation : How can we distinguish between language differences arising from cultural variation from actual language disorders

Leadership styles required to effectively lead : Based on your research, do you feel the leadership styles required to effectively lead a Fortune 500 company have changed in recent years?

Examine the role of cyber-security within homeland security : Examine the role of cyber-security within the homeland security enterprise. Specifically address how cyber-security relates to national critical infrastructure

What are audit objectives in examining of long-term debt : To make use of borrowed funds, on May 16 management invested the $500,000 was invested in securities. What are audit objectives in examining of long-term debt

How does cyber-security factor into critical infrastructure : Within the homeland security enterprise, how does cyber-security factor into critical infrastructure protection and risk management?

How much is the lease liability to be recognized : Entity X enters into a 3-year lease of equipment for an annual rent of 100,000 payable at the end of each year. How much is the lease liability to be recognized

How does culture relate to cultures in other societies : What happens to students who do not conform to accepted social norms? Is social control on campus stricter or more lenient than social control in other parts

Action research improve early childhood education : How can the use of action research improve early childhood education practice?

User Account

All Pages

What are audit objectives in examining of long-term debt

Reference no: EM132918029

Reference no: EM132918029

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT