Dave and Maria are working on the audit of a major client's financing cycle and activities. Dave's supervisor has recently apprised himthat he would like Dave to check the details and amounts surrounding a recent major bond issue by the client. Dave is unsure as to howto proceed, and asks Maria for advice. Which of the following would be helpful suggestions by Maria? (Select all that apply.)O You should think about examining the minutes of previous board of directors meetings, as details of the approval should becontained in those minutes.You should plan to meet with the client's bondholders to confirm the existence of bond indentures and certificates.O The easiest thing to do would be to request written assurances from senior management pertaining to the bond issue. Wecan then include this document in our audit file.O You should consider auditing related interest expense accounts, as a new bond issue would have increased these.

Bond issue is the issue which has been made by the company to get the funds from the public and that…

Answered: Which of the following would be helpful…

Business

Accounting

Which of the following would be helpful suggestions by Maria? (Sele

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Dave and Maria are working on the audit of a major client's financing cycle and activities. Dave's supervisor has recently apprised him
that he would like Dave to check the details and amounts surrounding a recent major bond issue by the client. Dave is unsure as to how
to proceed, and asks Maria for advice. Which of the following would be helpful suggestions by Maria? (Select all that apply.)
O You should think about examining the minutes of previous board of directors meetings, as details of the approval should be
contained in those minutes.
You should plan to meet with the client's bondholders to confirm the existence of bond indentures and certificates.
O The easiest thing to do would be to request written assurances from senior management pertaining to the bond issue. We
can then include this document in our audit file.
O You should consider auditing related interest expense accounts, as a new bond issue would have increased these.

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