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.

---

Definitions:

Action Potential

The sudden reversal of the resting potential, which initiates the firing of a neuron.

Neurotransmitters

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse, facilitating the transmission of impulses across synapses to another nerve, muscle, or gland.

Synapse

(SIN-aps) The junction where the axon terminal of a sending neuron communicates with a receiving neuron across the synaptic cleft.

Resting Potential

The slight negative electrical potential of the axon membrane of a neuron at rest, about –70 millivolts.