You Are Auditing the Long-Term Notes Payable Account for a Client

question 46

Multiple Choice

You are auditing the long-term notes payable account for a client. Which of the following audit procedures would you most likely employ?

• A) Compare interest expense recorded by the client with the notes payable account for reasonableness.
• B) Confirm bonds payable with individual bond holders.
• C) Perform analytical procedures on the bond discount or premium account.
• D) Examine bond documents for the presence of hybrid securities.

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Definitions:

Subsistence

The means by which an individual or group maintains basic living conditions, often pertaining to the self-provisioning of food and resources.

Genetically Modified

Organisms whose genetic material has been artificially manipulated through genetic engineering, often to achieve traits like pest resistance or improved nutritional content.

Domestication Practices

Involves the taming and breeding of animals or cultivation of plants by humans for food, work, companionship, or other benefits.

Indigenous Peoples

Ethnic groups who are the original inhabitants of a given region or country, maintaining traditions that differentiate them from the dominant post-colonial cultures and societies.