Of the Following, Which Is the Most Efficient Audit Procedure

question 64

Multiple Choice

Of the following, which is the most efficient audit procedure for verification of interest earned on bond investments?

• A)Tracing interest declarations to an independent record book.
• B)Recomputing interest earned using the interest rate and bond amount.
• C)Confirming the interest rate with the issuer of the bonds.
• D)Vouching the receipt and deposit of interest checks.

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Definitions:

Bacon's Rebellion

An armed rebellion held in 1676 by Virginia settlers led by Nathaniel Bacon against the rule of Governor William Berkeley, partly due to discontent with how Native American relations were handled.

Birth Rates

The number of live births per thousand of population per year.

Indenture

A legal agreement, contract, or document, especially one that binds an apprentice to a master.

Planters' Need

Historically refers to the demand for labor, often fulfilled through enslavement, by those owning large agricultural estates, especially in the context of American southern plantations.