How would you vouch for Long Term Debts:

Auditing and Assurance Revision Questions and Answers

Answer
Audit procedures for vouching and verification of long-term debts:
 Vouches issues of debt to authorization in minutes of the Board of Directors.
 Vouch entries to source documentation.
 Ascertain the amount of long-term debt maturing within one year.
 Confirm with the holders of principal amount, maturity date, interest rate, etc.
 Inspect bonds redeemed or retired during the period.
 Recalculate interest expense
 Examine transaction occurring near the year-end.
 Examine classification of obligations as either secured or unsecured.



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