In Auditing Long-Term Bonds Payable, an Auditor Most Likely Would

question 20

Multiple Choice

In auditing long-term bonds payable, an auditor most likely would:

• A)perform analytical procedures on the bond premium and discount accounts.
• B)examine documentation of assets purchased with bond proceeds for liens.
• C)compare interest expense with the bonds payable amount for reasonableness.
• D)confirm the existence of individual bond holders at year-end.

---

Definitions:

Bilateral Trade Agreements

Trade agreements between two countries that aim to reduce tariffs and quotas to encourage trade and economic cooperation.

International Law

The body of law that governs the conduct of nations and international organizations and their relations with one another and with natural and juridical persons.

Comparative Law

The academic study of the differences and similarities between the laws of different countries or jurisdictions.

International Organizations

Entities established by treaties or other agreements between governments that operate across national boundaries to pursue common goals.