The best approach to determine whether a capital lease has been “kept off the books” is to Review all major lease agreements to determine whether there are other leases to be capitalized. Review all capital lease agreement that have been recorded. Review all capital lease agreements that has been recorded. Examine the canceled checks for all recorded capital leases. Physically examine the asset and trace it to the general ledger.

The best approach to determine whether a capital lease has been “kept off the books” is to

Review all major lease agreements to determine whether there are other leases to be capitalized.

Review all capital lease agreement that have been recorded.

Review all capital lease agreements that has been recorded.

Examine the canceled checks for all recorded capital leases.

Physically examine the asset and trace it to the general ledger.

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