Explain how the auditor should verify the unamortized bond discount or premium.
The following are frequently performed audit procedures for the verification of bonds payable issued in previous years: 1. Analyze the general ledger account for bonds payable, interest expense, and unamor- tized bond discount or premium. 2. Obtain a confirmation from the bondholder. 3. Obtain a copy of the bond indenture agreement and review its important […]