If the Internal Audit Function Is Competent and Objective, the Auditor

question 12

True/False

If the internal audit function is competent and objective, the auditor may generally rely on the work of an internal audit function in certain areas to reduce the amount of external audit work in these areas.

---

Definitions:

Coupon Rate

The interest rate that a bond issuer will pay to the bondholders; it's set as a fixed percentage of the bond's par value.

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Price

The amount of money required to purchase a good, service, or asset.

Coupon

Represents the interest payment that a bond issuer owes to the bondholders, typically expressed as an annual percentage of the bond's face value.