An Audit Team Would Most Likely Verify the Interest Earned

question 9

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.

---

Definitions:

First Use

The initial occurrence or application of something, such as a term, invention, or procedure.

General Writing

A broad category of writing that encompasses various forms, including literary compositions, correspondences, reports, and everyday text, not confined to specialized or technical contexts.

Airline Limit

A predefined restriction set by airlines on various aspects such as baggage allowance, ticket changes, or seat availability.

Companys

Pertaining to a business entity or firm, typically involving its ownership, operations, or assets.