Final answer:
Auditors are most likely to find unrecorded long-term liabilities by analyzing interest payments, as these can indicate liabilities not reflected on the balance sheet. Option A is correct.
Step-by-step explanation:
The auditors would be most likely to find unrecorded long-term liabilities by analyzing interest payments. Interest payments can provide clues to auditors about existing liabilities that may not be recorded. For instance, if auditors detect interest payments that are not matched with corresponding liabilities on the balance sheet, this could indicate the presence of unrecorded long-term liabilities. It's a red flag that could suggest the need for further investigation to ensure the completeness of recorded liabilities.
When it comes to assessing long-term liabilities, auditors might look into recorded long-term liability accounts for any discrepancies, but unrecorded liabilities are more likely to surface during the review of interest payments rather than through other factors such as discounts or premiums on these liabilities.