You Are Auditing the Long-Term Notes Payable Account for a Client

Multiple Choice

You are auditing the long-term notes payable account for a client. Which of the following audit procedures would you most likely employ?

A) compare interest expense recorded by the client with the notes payable account for reasonableness
B) confirm bonds payable with individual bond holders
C) perform analytical procedures on the bond discount or premium account
D) examine bond documents for the presence of hybrid securities