Final answer:
An auditor would most likely analyze accrued interest receivable and accrued interest payable on the same working paper, as both accounts are directly related to interest and are likely to impact the income statement and balance sheet regarding the timing and recognition of interest transactions.
Step-by-step explanation:
An auditor would most likely analyze accrued interest receivable and accrued interest payable on the same working paper. The reason for this is that both accounts deal with interest that is earned but not yet received and interest that is incurred but not yet paid, respectively. These items are typically evaluated together because they represent the company's current obligations and claims that arise from borrowing and lending activities and can be closely interrelated.
Notes receivable and interest income could be related, but the primary focus of notes receivable is on the principal amount lent to the borrowers, while interest income pertains to the earnings from the lending. Notes payable and notes receivable could be scrutinized together to examine the cash flow and solvency aspect of a company, while interest income and interest expense could be compared to understand the net cost or income of borrowing and lending. However, assessing accrued interest receivable alongside accrued interest payable allows the auditor to evaluate the timing and recognition of interest-related transactions, which may impact both the income statement and the balance sheet directly.