Q12. The auditors would be most likely to find unrecorded long-term liabilities by analyzing:

A. Interest payments

B. Discounts on bonds payable

C. Premiums on bonds payable

D. Capital stock accounts

Q13. When evaluating financial statement presentation and disclosure, the notes should adequately describe all of the following except:

A. A LT Bonds Payable coming due in the current period

B. Unamortized bond premium or discount.

C. A contingent liability with a remote chance of success.

D. All of the above should be disclosed.

Q14. In the continuing audit of a manufacturing company of medium size, which of the following areas would you expect to require the least amount of audit time?

A. Owners Equity

B. Revenue

C. Assets

D. Liabilities

Q15. Which of the following is NOT a section in a nonpublic company audit report:

A. Board of Directors Responsibility

B. Managements Responsibility

C. Auditors Responsibility