Question: 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

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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