The auditor's plan to examine interest-bearing debt most likely will include steps that require:

Question

Quizplus · Accepted Answer

Vouching borrowing and repayment transactions is the most relevant step in examining interest-bearing debt as it ensures that all debt transactions are properly recorded in the books, including the original borrowing amount, interest rate, repayment terms, and any fees or costs associated with the debt. This step helps the auditor to determine whether the interest expense and related balance sheet items are accurately stated. Comparing book value to market value, confirming the presentation, and inspecting the accounts payable ledger may also be relevant, but they are not as directly related to examining interest-bearing debt as vouching transactions.

The Auditor's Plan to Examine Interest-Bearing Debt Most Likely Will