$16-19($LO $16\mathrm{.}3)$ Which of the following controls will most likely justify a reduced assessed level of control risk for the completeness assertion for notes payable?

$1.$ The accounting staff reviews board of directors$$ meeting minutes for any indication of any transactions involving outstanding debt to make sure all borrowings are included in the general ledger.

$2.$ All borrowings that exceed $$500,000$ require approval from the board of directors before loan contracts can be finalized.

$3.$ Before approving disbursement of principal payments on notes payable, the treasurer reviews terms in the note.

$4.$ Accounting maintains a detailed schedule of outstanding notes payable that is reconciled monthly to the general ledger. The following questions concern the audit of accounts in the capital acquisition and repayment cycle. Choose the best response for each.