The auditor's program for the examination of long-term debt should include steps that require the:

Question

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Examination of any bond agreement is important because it provides evidence about the terms and conditions of the long-term debt, including the amount, interest rate, maturity date, and covenants. This helps in determining whether the debt is properly recorded and disclosed in the financial statements, and whether the company is complying with the requirements of the bond agreement. The other options, such as verification of the existence of bond holders, inspection of the accounts payable subsidiary ledger or investigation of credits to the bond interest income account, are not directly relevant to the examination of long-term debt.

The Auditor's Program for the Examination of Long-Term Debt Should