Typically,omissions May Be Discovered When Audit Documentation Is Reviewed as Part

question 102

True/False

Typically,omissions may be discovered when audit documentation is reviewed as part of an external or internal review program.

---

Definitions:

Strip Bonds

Bonds that have had their principal and coupon payments separated, or "stripped", creating two distinct types of securities: zero-coupon bonds and interest payment coupons.

Compounded Monthly

Refers to the process of adding interest to the principal balance of a loan or investment on a monthly basis, allowing the interest to then earn interest in the subsequent months.

Quadruple

To multiply or increase fourfold; also refers to a quantity that is four times as large as another.

Effective Annual Rate

The interest rate that is adjusted for compounding over a yearly period.