I need these answers by the deadline. Review Questions 15-1. An auditor generally follows a substantive strategy when auditing long term debt and capital accounts because . The auditor may follow a reliance strategy when 15-2. The most important assertions for long term debt are. The documents that normally contain the authorization to issue long term debt is 15-3. Substantive analytical procedures may be used to provide evidence on the reasonableness of interest expense by 15-4. Confirmations of long term debt provide evidence about the following assertions 15-5. The registrar has the following functions. The transfer agent is responsible for . The dividend disbursing agent performs Multiple Choice 15-11. Which of the following questions would an auditor most likely include on a control questionnaire for notes payable a. Are assets that collateralize notes payable critically needed for the entitiys continued existence? b. Are two or more authorized signatures required on checks that repay notes payable? c. Are the proceeds from notes payable used to purchase noncurrent assets? d. Are direct borrowings on notes payable authorized by the board of directors? 15-12. An auditors primary purpose in examining a letter received from the bank shortly after the balance sheet date that renews and extends a clients note payable is most likely to obtain evidence concerning managements assertions about: a. Existence b. Presentation and disclosure classification c. accuracy d. Valuation and allocation 15-13. An audit program for long term debt would most likely include steps that require a. Comparing the carrying amount of the debt to its year end market value b. Correlating the interest expense recorded for the period with the debt outstanding for the period c. Verifying the existence of the holders of the debt by direct confirmation d. Inspecting the accounts payable subsidiary ledger for unrecorded long term debt 15-14. A client has established a bond sinking fund to repurchase a portion of the outstanding bonds each year. The auditor can best verify the clients bond sinking fund transactions and year end bond balance by a. Confirmation of retired bonds with individual holders b. Confirmation with the bond trustee c. Recomputation of interest expense, interest payable, and amortization of the bond discount or premium. d. examination account of the bond retired during the year 5-15 When a client company does not maintain its own stock records, the auditor should obtain written confirmation from the transfer agent and registrar concerning a. restriction on the payment of dividends b. the number of shares issued in outstanding c. guarantees of preferred stock liquidation value d. number of shares subject to agreements to be purchased 15-16. The primary responsibility of a bank acting as registrar of capital stock is to a. ascertain that dividends declared do not exceed the statutory amount allowable in the state of incorporation. b. Account for stock certificates by comparing the total shares outstanding to the total in the shareholders subsidiary ledger c. Act as an independent third party between the board of directors and outside investors concerning mergers, acquisitions, and the sale of treasury stock d. verify that stock has been issued in accordance with the authorization of the board of directors and the articles of incorporation 15-17. To obtain evidence on the authorization assertion, an auditor should trace corporate stock issuances and treasury stock transactions to the a-Number of stock certificates b. articles of incorporation c. transfer agents records d. Minutes of the board of directors 15-18. Although the quantity and content of audit working papers vary with each particular engagement, an auditors permanent files are most likely to include a- Schedules that support the current years adjusting entries b. Prior years accounts receivable confirmations that were classified as exceptions c. Documentation indicating that the audit work was adequately planned and supervised d. Information regarding the different classes of stock and the number of shares of each class that are authorized to be issued. 15-19 An auditor compares the current year revenues and expenses with those of the prior year and investigates changes exceeding 5 percent. By this procedure, the auditor would be most likely to learn that a.-Fourth quarter payroll taxes in the current year were not paid. b. the client charged its capitalization policy for small tolls in the current year c. A current year increase in property tax rates has not been recognized in the clients accrual. 15-20 Which of the following comparisons would be most useful to an auditor in evaluating the overall financial results of an entitys operations? a- Prior year accounts payable to current year accounts payable b- prior year payroll expense to budgeted current year revenue c. Current year revenue to budgeted current year revenue d. Current year warranty expense to current year contingent liabilities