According to IIA Guidance, Which of the Following Is True

question 427

Multiple Choice

According to IIA guidance, which of the following is true about the supervising internal auditor's review notes? • They are discussed with management prior to finalizing the audit. • They may be discarded after working papers are amended as appropriate. • They are created by the auditor to support her fieldwork in case of questions. • They are not required to support observations issued in the audit report.

• A) 1 and 3 only
• B) 1 and 4 only
• C) 2 and 3 only
• D) 2 and 4 only

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Definitions:

Regular Payments

Periodic payments made consistently over time, such as monthly mortgage or loan repayments, or dividend payouts to shareholders.

Capitalized

Expenses or costs that are added to the value of an asset and expensed over time through depreciation or amortization, rather than immediately.

Perpetuity

An annuity that pays a fixed amount of money for an infinite amount of time.

Amortized

The process of gradually paying off a debt over time in regular installments of interest and principal sufficient to repay the loan fully by its maturity date.