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In connection with the audit of an issue of long- term bonds payable, the audit team should a. Determine whether

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In connection with the audit of an issue of long- term bonds payable, the audit team should
a. Determine whether bondholders are persons other than owners, directors, or officers of the company issuing the bond.
b. Calculate the effective interest rate to see whether it is substantially the same as the rates charged for similar issues.
c. Decide whether the bond issue was made without violating state or local laws or regulations.
d. Ascertain that the client has obtained the opinion of counsel on the legality of the issue.

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a Incorrect Related parties can own the bonds but their ownership must be discl…View the full answer


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Auditing and Assurance Services

Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

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

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Question Posted: October 27, 2014 05:47:02
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