17-26 (Substantive tests and disclosures for long-term debt);Andrews, CPA, has been engaged to audit the financial statements of Broadwall Corporation for the year ended December 31, 20X1. During the year, Broadwall obtained a long-term loan from a local bank pursuant to a financing agreement that provided that the;1. Loan was to be secured by the company's inventory and accounts receivable.;2. Company was to maintain a debt-to-equity ratio not to exceed two to one.;3. Company was not to pay dividends without permission from the bank.;4. Monthly installment payments were to commence July 1, 20X1.;In addition, during the year the company also borrowed, on a short-term basis, from the;president of the company, including substantial amounts just prior to the year-end.;Required;a. For purposes of Andrews' audit of the financial statements of Broadwall Corporation;what substantive tests should Andrews employ in examining the described loans? Do;not discuss internal control.;b. What are the financial statement disclosures that Andrews should expect to find with;respect to the loans from the president?;AICPA;Attachments;17.26 substantive tests and disclosures.docx
Andrews- CPA- has been engaged to audit the financial statem
This question was answered on: Dec 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 18, 2020EXPERT
GET INSTANT HELP
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).