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

To examine long-term debt, the auditor would need to verify the accuracy of interest expense recorded for the period with the outstanding debt, to ensure that the interest rate used was correct and that there were no errors in the calculation. The other options are not relevant to the examination of long-term debt.

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