An Auditor Would Most Likely Verify the Interest Earned on Bond

question 956

Multiple Choice

An auditor would most likely verify the interest earned on bond investments by:

• A) Vouching the receipt and deposit of interest checks.
• B) Confirming the bond interest rate with the issuer of the bonds.
• C) Recomputing the interest earned on the basis of face amount, interest rate, and period held.
• D) Testing the internal controls over cash receipts.

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