In auditing long-term bonds payable,an auditor most likely would
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.

Question

Quizplus · Accepted Answer

Comparing interest expense with the bond payable amount for reasonableness helps ensure that the interest expense recorded is consistent with the bond terms and outstanding balance, which is a key aspect of auditing long-term bonds payable.

In Auditing Long-Term Bonds Payable,an Auditor Most Likely Would