In auditing for unrecorded long-term bonds payable,an audit team most likely will
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 identify discrepancies that may indicate unrecorded bonds, as interest expense should correlate with the amount of bonds payable.

In Auditing for Unrecorded Long-Term Bonds Payable,an Audit Team Most