32) An important test for unrecorded debt is to compare the interest expense accounts wi with 32) long-term debt 33) An indenture is the writen agreement between the bond issuer and the bondholder.33) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 34) Which of the following is not a substantive audit procedure for estimates of 34) management? A) Observing whether estimates are prepared by qualified personnel B) Recalculating the mathematical estimate C) Comparing the estimates of management to subsequently discovered facts before the end of fieldwork D) Developing an independent estimate based on alternative assumptions 35) If it would be appropriate to confirm capital stock, the auditor would obtain the 35) confirmation from: A) the board of directors C) management. B) an independent registrar. D) stockholde 36) Which ASB balance assertion is of the most importance to auditors for long-term 36) liabilities? A) Completeness C) Valuation B) Existence D) Rights and obligations 37) The preferred method of determining fair value of transactions is: ) external auditor estimates. B) detailed computations by outside experts. C) basing them on reasonable management assumptions. D) market-based values. 38) Loan covenants: A) require the borrower to maintain certain financial characteristics. B) describe the collateral of the loarn. C) describe the lender's responsibilities. D) include all the above. 39) Related party transactions: A) must be assumed to be valued differently than if they were arm's length. B) must be valued as if they were arm's length. C) must be disclosed in the financial statements. D) must be disclosed in the financial statements and the auditor's report