During the audit of notes payable of Mohamed Tractor Company, a CPA was reviewing the terms of a related loan agreement. She noted that the note matured within 12 months of the audit date but the loan agreement provided that the term of the note could be extended an additional 12 months at the option of the company, provided there had been "no adverse changes in its financial or operating conditions."

How can the CPA audit the classification of notes payable as a long-term liability in this case?