Which of the following procedures would be included in the auditor's audit program for long-term debt?
A)Investigation of credits to the bond interest income account.
B)Inspection of the accounts payable master file.
C)Verification of the existence of the bondholders.
D)Review debt loan agreements.

Question

Quizplus · Accepted Answer

Long-term debt audit procedures would include reviewing the debt loan agreements to verify the terms and conditions of the debt. Investigation of credits to the bond interest income account and inspection of the accounts payable master file are not directly related to long-term debt, and verification of the existence of bondholders may be more relevant for auditing equity.

Which of the Following Procedures Would Be Included in the Auditor's