$22-23($OSjective $22-2)$ The ending general ledger balance of $$568,000$ in notes payable for the Kolman Production Company is made up of $20$ notes to nine different payees. The notes vary in duration anywhere from $30$ days to two years, and in amounts from $$10,000$ to $$50,000.$ In some cases, the notes were issued for cash loans; in other cases, the notes were issued directly to vendors for the acquisition of inventory or equipment. The use of relatively short$-$term financing is necessary because all existing properties are pledged for mortgages. Nevertheless, there is still a serious cash shortage.

Record$-$keeping procedures for notes payable are not good, considering the large number of loan transactions. There is no notes payable master file or independent verification of ending balances; however, the notes payable records are maintained by an employee who does not have access to cash.

The audit has been done by the same CPA firm for several years. In the current year, the following procedures were performed to verify notes payable:

Obtain a list of notes payable from the client, foot the notes payable balances on the list, and trace the total to the general ledger.

Examine signed documents for all outstanding notes included on the listing. Compare the name of the lender, amount, and due date on the document with the list.

Obtain a confirmation from lenders for all listed notes payable. The confirmation should include the due date of the loan, the amount, and interest payable at the balance sheet date.

Recompute accrued interest on the list for all notes. The information for determining the correct accrued interest is to be obtained from the signed document. Foot the accrued interest amounts and trace the balance to the general ledger.

Examine financial statement disclosures, noting adequate discussion of collateral and notes payable to related parties.

a$.$ What should be the emphasis in the verification of notes payable in this situation? Explain.

b$.$ State the purpose of each of the five audit procedures listed.

c$.$ List other audit procedures that should be performed in the audit of notes payable in these circumstances.

just need a$,$ b and c answered