Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 19

The auditor is most likely to verify the interest earned on bond investments by
a. Verifying the receipt and deposit of interest checks.
b. Confirming bond interest rate with the issuer of the bonds.
c. Recomputing the interest earned on the basis of face amount, interest rate, and period held.
d. Testing controls relevant to cash receipts.