Explore BrainMass

Audit of Long-Term Debt

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.


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.