During the course of an audit, a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the long-term debt account. This observation could lead the auditor to suspect that

Question

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If the interest expense is excessive relative to the long-term debt balance, it may indicate that not all long-term debt has been recorded, suggesting that long-term debt is understated.

During the Course of an Audit, a CPA Observes That