In connection with the audit of an issue of long-term bonds payable, the audit team should:
A)determine whether bondholders are persons other than owners, directors, or officers of the company issuing the bond.
B)calculate the effective interest rate to see if it is substantially the same as the rates for similar issues.
C)decide whether the bond issue was made without violating state or local law.
D)ascertain that the client has obtained the opinion of counsel on the legality of the issue.

Question

Quizplus · Accepted Answer

Ascertain that the client has obtained the opinion of counsel on the legality of the issue is a standard procedure in auditing long-term bonds payable. This ensures that the bond issuance complies with applicable laws and regulations, which is crucial for the validity of the bonds and the protection of the investors.

In Connection with the Audit of an Issue of Long-Term