If the External Auditors Decide That the Work Performed by the Internal

question 95

Multiple Choice

If the external auditors decide that the work performed by the internal auditors may be used,they should consider the internal auditors':

• A)Competence,objectivity,and approach.
• B)Efficiency and experience.
• C)Independence and review skills.
• D)Training and supervisory skills.

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Definitions:

Zero Coupon Bonds

Bonds issued at a discount from their face value, which do not pay periodic interest but are redeemed at full face value at maturity.

Effective Interest Rate

The real rate of interest taking into account the effects of compounding over a given period.

Discount

A reduction from the full amount or value of a product or service, usually to entice customers or accelerate sales.