Auditing Debt

Match each of the procedures with the associated description:

Procedures:

Step 1 - Analytical Procedures

Step 2 - Debt Roll-Forward and G/L Tie-Out

Step 3 - Underlying Agreements and Approvals

Step 4 - Confirmations

Step 5 - Financial Covenant

Step 6 - Accrued Interest/ Interest Expense

Step 7 - Cash Flow Statement

Step 8 - Uniform Commercial Code (UCC) search

Step 9 - Financial Statement disclosure

Descriptions:

• Review/test cost of borrowing for the year
• Reconcile activity to be presented in the statement of cash flows
• Review loan documents
• Obtain balance directly from creditor
• Review compliance with creditors requirements
• Compare balance activity to expectations
• Review all activity for the year at the loan level
• Conduct a search for debts previously undisclosed to us
• Review balance sheet classification and disclosures