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SELF-ASSESSMENT Review / Chapter 15 KC# 1. Debenture bonds are not backed by a specific asset, they are only backed by 2.Name two of the auditors objectives in auditing debt: b. 3. How would an auditor know whether a long-term debt was properly authorized? 4. If you were assigned to auditing the long-term debt of a corporation, what are some of the audit procedures that you would use? (There are 12. Name at least 4.) 5. If you are assigned to audit the retained earning account of a corporation, and you see that there are two debit entries decreasing retained earnings, name two possible explanations for these reductions 6.If a corporation doesn't keep the records of shareholders in-house, name two types of companies that it may employ for this task? 7. You are the auditor of company X. You come across a document in the Human Resources Dept that you never saw or heard of before entitled, "Employee Stock Option Plan." Later, you go back to check the General Ledger. What account should reflect the existence of the ESOP? Where would you look to see if it was properly authorized? 8. What written documents would be needed to prove the existence of a sole proprietorship? How about a partnership