You are auditing the long-term notes payable account for a client. Which of the following audit procedures would you most likely employ?

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Comparing interest expense recorded by the client with the notes payable account for reasonableness is a common audit procedure used to ensure that the interest expense is being accurately recorded in the notes payable account. This helps ensure that the long-term notes payable account is fairly stated in the financial statements. The other options listed are not typically used when auditing the long-term notes payable account. Confirming bonds payable with individual bond holders is more applicable to bond accounts, performing analytical procedures on the bond discount or premium account is more applicable to the bond account itself, and examining bond documents for the presence of hybrid securities is more applicable to the equity section of the balance sheet.

You Are Auditing the Long-Term Notes Payable Account for a Client