Explore BrainMass

Explore BrainMass

    Audit of Long-Term Debt

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Audit of Long-Term Debt

    The long-term debt working paper (indexed K-1) on attached doc. was prepared by client personnel and audited by AA, an audit assistant, during the calendar year 2006 audit of American Widgets, Inc., a continuing audit client. The engagement supervisor is thoroughly reviewing the working papers.

    Overall Conclusions
    Long-term debt, accrued interest payable, and interest expense are correct and complete at 12/31/06.

    Identify the deficiencies in the working paper that the engagement supervisor should discover.

    © BrainMass Inc. brainmass.com March 4, 2021, 7:36 pm ad1c9bdddf


    Solution Preview

    1.First Commercial Bank: Calculation of accrued interest on 31st Dec. 2006 is not right it will come to only Rs.493 this change will be effected by a journal entry so that change is ...

    Solution Summary

    This solution identifies and explains four main deficiencies the engagement supervisor should find in the working paper. It also contains the corrections for the identified mistakes.