1.In the Verity Distillery Company situation, the officers of the Company entered into a series of financial transactions. In substance, what did the transactions represent?

2. If you were auditing a combined eight column schedule of long-term debt, accrued interest payable and interest expense, what is the most efficient way to audit interest expense for the year?

3. When you are auditing retained earnings on your clients year-end trial balance, what is the first and most important procedure you should do?