For Audits of Very Large Organizations, the Number of Notable

question 29

Multiple Choice

For audits of very large organizations, the number of notable items _______.

• A)could number in the hundreds
• B)could number in the thousands
• C)could number in the hundreds or thousands
• D)could number in the millions

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Definitions:

Financing Structure

The composition of a company’s various sources of funds, including debt and equity financing.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense on the income statement.

Bond Issue

The process by which a government or corporation raises funds by selling bonds to investors, which are to be repaid with interest at a future date.

Amortizing

The process of spreading out a loan into a series of fixed payments over time.