An auditor's program to examine long-term debt should include steps that require:

Choice "a" is correct. Examination of bond trust indentures should be included in audit program of

longterm debt to assure that the client was not in violation of any covenants in the indentures.

Choice "b" is incorrect. Inspecting the accounts payable subsidiary ledger relates to accounts

payable, a current liability.

Choice "c" is incorrect. Long-term debt generates interest expense, not interest income.

Choice "d" is incorrect. Generally, the existence of the bondholders of debt is not verified.