FIGURE 21 Set tolerable misstatement and Phase I or notes pay able Assess control risk for notes payable Phase ethodology for Designing tests of details of Balances for Notes payable Design and perform of controls and substantive tests of Phase ll transactions Design and perform analytical procedures for note PhaseⅢ payable balance Design tests of details Audit procedures of notes payable Sample size balance to satisfy PhaseⅢl bala Items to select audit objectives Timing @2000 Prentice hall.IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 21 - 1 Methodology for Designing Tests of Details of Balances for Notes Payable