An Experienced Auditor Will Review the Bond Indenture While Testing

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.