Which of the following statements is correct regarding the capital acquisition and payment cycle?
A) Bonds are frequently issued by companies in small amounts.
B) There are relatively few transactions and each transaction is typically highly material.
C) A primary emphasis in auditing debt is on existence.
D) Audit procedures for notes payable and interest income are often performed simultaneously.

Question

Quizplus · Accepted Answer

The capital acquisition and payment cycle typically involves few transactions, but each transaction is usually highly material, making it crucial for auditors to focus on these transactions.

Which of the Following Statements Is Correct Regarding the Capital