The Internal Audit Activity Can Be Involved with Systems Development

question 118

Multiple Choice

The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:

• A) The cost of audit involvement can be minimized.
• B) There are clearly defined points at which to issue audit comments.
• C) Redesign costs can be minimized.
• D) The threat of lack of audit independence can be minimized.

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Definitions:

Carrying Value

The recorded cost of an asset in a company's books, less any accumulated depreciation or amortization.

Face Value

The nominal value printed on a financial instrument, such as a bond or stock certificate, representing its worth as stated by the issuer.

Bond Interest Paid

The amount paid by the issuer of a bond as interest to the bondholders, usually expressed as a fixed percentage of the principal.

Discount

A reduction from the usual cost of something or the act of lowering the price.