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

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

FINANCIAL ACCOUNTING
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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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.
Transcribed Image Text: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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