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The Auditor Can Best Verify a Client's Bond Sinking Fund

Question 24

Multiple Choice

The auditor can best verify a client's bond sinking fund transactions and year-end balance by:


A) Confirmation with individual holders of retired bonds.
B) Confirmation with the bond trustee.
C) Recomputation of interest expense,interest payable,and amortization of bond discount or premium.
D) Examination and count of the bonds retired during the year.

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