The auditor may rely on management inquiry for all disclosures relating to bond indentures and the auditor need not read the entire indenture.

Question

Quizplus · Accepted Answer

The auditor cannot solely rely on management inquiry for all disclosures relating to bond indentures, as they are required to read and understand the relevant portions of the indenture to ensure their accuracy and completeness. Simply relying on management inquiry would not be sufficient to meet auditing standards.

The Auditor May Rely on Management Inquiry for All Disclosures