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During the year under audit, a company has completed a private placement of a substantial amount of bonds. Which of the following is the most important step in the auditor’s program for the examination of bonds payable? A. Confirming the amount issued with the bond trustee. B. Examining the bond records maintained by the transfer agent. C. Recomputing the annual interest cost and the effective yield. D. Tracing the cash received from the issue to the accounting records. |