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An auditor is determining whether an issuance of notes payable for cash was correctly recorded. Her ...

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An auditor is determining whether an issuance of notes payable for cash was correctly recorded. Her ...

An auditor is determining whether an issuance of notes payable for cash was correctly recorded. Her or his best course of action would be to

▸ confirm with the bond trustee as to the amount of bonds issued.

▸ confirm with the underwriter as to the appropriate market yield on the bonds.

▸ trace the cash received from the proceeds to the accounting records.

▸ verify that the amount was included in a footnote disclosure.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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