Which of the following would an auditor not typically perform as part of gaining an understanding of the client's controls related to debt?
A)Review policies related to approval required for new debt.
B)Inquire of management about the process for reviewing compliance with debt covenants.
C)Review the client's documentation of controls.
D)Recalculate interest expense.

Question

Quizplus · Accepted Answer

Recalculating interest expense is related to the substantive testing of debt accounts, not the understanding of the client's debt controls. A, B, and C are all procedures that would help an auditor gain an understanding of the client's controls related to debt.

Which of the Following Would an Auditor Not Typically Perform