When Considering the Competence of Internal Auditors,external Auditors Should Obtain

question 69

Multiple Choice

When considering the competence of internal auditors,external auditors should obtain evidence about the

• A) Educational and experience qualifications of the internal auditors.
• B) Organizational status of the internal auditors.
• C) Lines of communication within the entity of the internal auditors.
• D) The size of the internal audit department.

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Definitions:

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.

Discount

A reduction in the price of goods or services, often used as a sales promotion or to encourage early payment.

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders, to be repaid at a future date.