21. When auditing prepaid insurance, an auditor discovers that the original insurance policy on plant equipment is not available for inspection. The policy's absence most likely indicates the possibility of a(n) (a) Insurance premium due but not recorded (b) Lien on the plant equipment. (c) Understatement of insurance expense (d) Deficiency in the coinsurance provision. 22. During an audit of an entity's shareholders' equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit procedure most likely is intended to verify management's assertion of (a) Classification and understandability (b) Completeness. (c) Existence (d) Valuation or allocation 23 An auditor is most likely to inspect loan agreements under which an entity's inventories are pledged to support management's financial statement assertion of (a)Valuation or allocation (b) Classification and understandability (c) Occurrence (d) Completeness. 24. An auditor would most likely verify the interest earned on bond investments y: (a)Vouching the receipt and deposit of interest checks (b)Testing internal controls relevant to cash receipts. (c) Recomputing the interest earned on the basis of the face amount, interest rate, and period held. Confirming the bond interest rate with the issuer of the bonds. (d)