Which of the following is true regarding bonds?

Bonds are debt instruments through which an organization borrows money from investors. In a typical bond arrangement, the issuer pays periodic interest to bondholders and repays the principal, or face value, at maturity. Bondholders generally do not receive voting rights or corporate control; they are creditors, not owners. Debenture bonds are unsecured bonds backed by the issuer’s general creditworthiness, so Option D is incorrect. Organizations with strong credit ratings often issue debentures because investors are willing to lend without specific collateral, making Option B incorrect. Internal auditors reviewing financing should understand bond terms, interest obligations, maturity, covenants, collateral, and financial statement classification. Therefore, Option C is correct.