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

question 53

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.