In Auditing for Unrecorded Long-Term Bonds Payable, an Audit Team

question 36

Multiple Choice

In auditing for unrecorded long-term bonds payable, an audit team most likely will:

• A)perform analytical procedures on the bond premium and discount accounts.
• B)examine documentation of assets purchased with bond proceeds for liens.
• C)compare interest expense with the bond payable amount for reasonableness.
• D)confirm the existence of individual bondholders at year-end.

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Definitions:

Infection

The entry and increase of pathogens such as bacteria, viruses, and parasites that are usually not found inside the body.

Abruptly

Suddenly and unexpectedly, often in a way that seems rude or unanticipated.

Yawning

An involuntary action involving opening the mouth widely and inhaling deeply, often in response to tiredness or boredom.

Deep Prolonged Breath

A type of breathing technique where one inhales deeply and slowly, filling the lungs fully, followed by a slow, complete exhalation.