An Audit Team Would Most Likely Verify the Interest Earned

question 10

Multiple Choice

An audit team would most likely verify the interest earned on bond investments by:

• A)vouching the receipt and deposit of interest checks.
• B)confirming the bond interest rate with the issuer of the bonds.
• C)recomputing the interest earned on the basis of face amount, interest rate, and period held.
• D)testing internal controls relevant to cash receipts.

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Definitions:

Glucose

A simple sugar that is an important source of energy for cells and the primary form of sugar transported in the blood.

HCl

Hydrochloric acid, a strong acid formed by the solution of hydrogen chloride in water, which is a major component of gastric acid in the digestive system.

Digestion

Digestion is the process by which food is broken down in the gastrointestinal tract into nutrients that can be absorbed and utilized by the body.

Antioxidants

Substances that can prevent or slow damage to cells caused by free radicals, unstable molecules that the body produces as a reaction to environmental and other pressures.