How might you use the information presented above to audit interest expense and interest payable accounts?

Your client, EKB, Inc., prepared the following schedule for long-term debt for the audit of financial statements for the year ended December 31, 2019:
Notes Payable Description
Interest
Rate
Due
Date
1/1/19
Beginning
Balance Additions Payments
12/31/19
Ending
Balance
Mortgage Payable 6.25% 2025 $ 1,125,000 – $ 200,000 $ 925,000
Unsecured Notes Payable 6.00% 2027 7,500,000 – 475,000 7,025,000
Secured Bonds 5.75% 2023 2,700,000 $ 1,250,000 300,000 3,650,000
Convertible Debentures 5.25% 2030 — 10,000,000 — 10,000,000
Total $11,325,000 $11,250,000 $975,000 $21,600,000
Required
Required
Chapter 22 / AUDIT OF THE CAPITAL ACQUISITION AND REPAYMENT CYCLE 747
a. What type of evidence would you examine to support the beginning balances in the
accounts?
b. What types of evidence would you use to support the additions to each account?
c. What types of evidence would you examine to support payments?
d. What procedures would you perform related to the ending balances in the accounts?
e. What evidence would you use to verify interest rates and due dates?
f. How might you use the information presented above to audit interest expense and
interest payable accounts?

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