An audit team would most likely verify the interest earned on bond investments by a. Vouching the

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An audit team would most likely verify the interest earned on bond investments by

a. Vouching the receipt and deposit of interest checks.

b. Confirming the bond interest rate with the issuer of the bonds.

c. Re-computing the interest earned on the basis of face amount, interest rate, and period held.

d. Testing internal controls relevant to cash receipts.

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Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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Question Posted: Oct 27, 2014 05:47 AM

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An audit team would most likely verify the interest earned on bond investments by a. Vouching the

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a Incorrect This ignores accruals b Incorrect The interest ea...View the full answer

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