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.

---

Definitions:

Profit-Maximizing Price

The price level at which a business can sell its product or service to achieve the highest possible profit.

ATC Curve

represents the Average Total Cost of production, showing how costs change with changes in output level.

Profit-Maximizing Monopoly

A monopolistic entity that adjusts its production volume and price to achieve the highest possible profits.

Price Per Unit

The cost assigned to a single unit of a product or service, used to determine the total price for a specific quantity.