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QUESTION THREE [20] During your audit of Propco (Pty) Ltd you come across the following journal: 2 680 000 Dr Land and Buildings (Erf 2413)
QUESTION THREE [20] During your audit of Propco (Pty) Ltd you come across the following journal: 2 680 000 Dr Land and Buildings (Erf 2413) Cr Long term loan (mortgage bond ABC Bank) 2 680 000 : Required: 3.1 List five (5) particulars in the loan agreement that will receive your attention, as part of your verification of the interest bearing borrowing. (5) 3.2 Describe the substantive procedures you will perform to audit the long term loan (mortgage bond) at year end to ensure that the interest bearing borrowing is properly accounted for in the clients annual financial statements. (15)
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