Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 7

In gathering evidence to evaluate unrecorded long-term bonds payable, an auditor most likely will
a. Perform analytical procedures on the bond premium and discount accounts.
b. Examine documentation of assets purchased with bond proceeds for liens.
c. Compare interest expense with the bond payable amount for reasonableness.
d. Confirm the existence of individual bondholders at year-end.