During the audit of Jaycee Enterprises, LLC, the external auditors, Darkside CPA Firm have noted...
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Accounting
During the audit of Jaycee Enterprises, LLC, the external auditors, Darkside CPA Firm have noted that the client has pledged a significant amount of inventory to help secure a lower interest rate on an outstanding long-term loan. As a result of this determination. which of the following would the auditors likely need to evaluate? (Select all that apply.) Determine the average interest rate for similar loans to determine if the pledged value of inventory is valued appropriately. The auditors may wish to examine the pledging agreement to determine if it matches details contained in the client's records. The auditors will likely examine the client's notes to the financial statements to ensure key disclosures pertaining to the pledged inventory are present. Determine the net realizable value of accounts receivable related to inventory sold on credit
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