The Auditor Can Best Verify a Client's Bond Sinking Fund

question 37

Multiple Choice

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

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

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