75.In auditing for unrecorded long-term bonds payable, an audit team most likely will A. Perform analytical procedures on the bond premium and discount accounts.B. Examine documentation of assets purchased with bond proceeds for liens.C. Compare interest expense with the bond payable amount for reasonableness.D. Confirm the existence of individual bondholders at year-end.
76.An audit plan to examine long-term debt most likely would include steps that require 77.Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable? A. Are assets that collateralize notes payable critically needed for the entity's continued existence?B. Are two or more authorized signatures required on checks that repay notes payable?C. Are the proceeds from notes payable used for the purchase of noncurrent assets?D. Are direct borrowings on notes payable authorized by the board of directors?78.An audit team's purpose in reviewing the documentation concerning the renewal of a note payable shortly after the balance-sheet date most likely is to obtain evidence concerning management's assertions about 79.Which of the following audit procedures would notlikely be performed for audits of investments? 80.Which of the following audit procedures would notlikely be performed for audits of shareholders' equity? A. Read board of directors' minutes for authorization of equity transactions.B. Confirm outstanding common and preferred stock with stock registrar.C. Compare valuation of stock to published market prices.D. Obtain management representation about number of shares issued and outstanding.81.ABC Company has 100 shares of IBM stock that is held as an investment. The stock was purchased three years ago and has been in the client's safe deposit box along with other investment securities. During an inspection of securities held by the client, the auditor noted the 100 shares of IBM stock had a different CUSIP number than the number listed when purchased and the number verified during the previous audit. Which of the following would be the auditor's main concern about this discovery?
- Spring '12
- Financial audit, investment cycle