An audit plan to examine long-term debt most likely would include steps that require
A) Comparing the carrying amount of held-to-maturity securities with their year-end market values.
B) Correlating interest expense recorded for the period with outstanding debt.
C) Verifying the existence of the holders of the debt by direct confirmation.
D) Inspecting the accounts payable subsidiary ledger for unrecorded long-term debt.

Question

Quizplus · Accepted Answer

Correlating interest expense recorded for the period with outstanding debt is a typical audit procedure to ensure that interest expense is accurately recorded and corresponds with the debt obligations.

An Audit Plan to Examine Long-Term Debt Most Likely Would