Question: An audit plan to examine long- term debt most likely would include steps that require a. Comparing the carrying amount of held- to- maturity securities

An audit plan to examine long- term debt most likely would include steps that require
a. Comparing the carrying amount of held- to- maturity securities with their year- end market values.
b. Correlating interest expense recorded for the period with outstanding debt.
c. Verifying the existence of the holders of the debt by direct confirmation.
d. Inspecting the accounts payable subsidiary ledger for unrecorded long- term debt.

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a Incorrect Heldtomaturity debt is recorded at cost b Correct By reconciling interest expense ... View full answer

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