________ Constantly Evaluates Internal Controls and Transactions and ________ Provides

question 8

Multiple Choice

________ constantly evaluates internal controls and transactions and ________ provides the status of the system so that an auditor can know at any given time whether the system is operating within the parameters.

• A) Continuous reporting; continuous monitoring
• B) Continuous monitoring; continuous reporting
• C) The heterogeneous systems approach; the homogenous systems approach
• D) The homogenous systems approach; the heterogeneous systems approach

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Definitions:

Effective-Interest Method

An accounting practice used to allocate loan or bond interest expense over the life of the loan/bond based on the loan's/bond's yielding interest rate.

Bond Premium Amortization

The gradual reduction over time of the amount by which a bond's purchase price exceeds its face value.

Carrying Value

Another term for book value; it's the value at which an asset is recognized on the balance sheet.

Straight-Line Method

A method of calculating depreciation of an asset where the asset's cost is reduced equally over its useful life.