The Auditor Can Best Verify an Entity's Bond Sinking Fund

question 31

Multiple Choice

The auditor can best verify an entity's bond sinking fund transactions and year-end balance by:

• A)recomputation of interest expense, interest payable, and amortization of bond discount or premium.
• B)confirmation with individual holders of retired bonds.
• C)confirmation with the bond trustee.
• D)examination and count of the bonds retired during the year.

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