Non-current Liabilities (2)

Question 1

Completeness (breakdown liabilities compare)

Answer 1

Obtain breakdown of liabilities, compare to prior year audit working papers and for any items no longer included agree to:

Repayment
Inclusion

Question 2

What is repayment in completeness?

Answer 2

Repayment amount in cash book

Question 3

What is inclusion in completeness?

Answer 3

Inclusion as current liability if reclassified

Question 4

Completeness (board evidence borrowings)

Answer 4

Review board minutes for evidence of any new borrowings which might not be recorded

Question 5

Completeness (cash book loans)

Answer 5

Review cash book to ensure all new loans have been recorded

Question 6

Accuracy, valuation and allocation (perform finance charges)

Answer 6

Perform proof in total of finance charges

Question 7

Accuracy, valuation and allocation (capital interest)

Answer 7

Agree capital and interest amounts to confirmation letters

Question 8

Accuracy, valuation and allocation (finance agreements)

Answer 8

Recalculate finance charges agreeing interest rates to loan agreements