An Experienced Auditor Will Review the Bond Indenture While Testing

question 74

Multiple Choice

An experienced auditor will review the bond indenture while testing long-term obligations for which purpose?

• A)To determine the fair market value of the bond and compare it to the recorded amount less a valuation allowance.
• B)To ensure that a provision has not been violated that will cause the debt to become current.
• C)To write disclosures for the client relating to bond terms such as interest and payments.
• D)To create a confirmation that will be sent to the bond trustee for proper verification of bond value.