An External Auditor Conducts an Information Systems Audit Using the Professional

question 54

Multiple Choice

An external auditor conducts an information systems audit using the professional standards promulgated by the

• A) Institute of Internal Auditors.
• B) American Institute of Certified Public Accountants.
• C) Institute of Management Accountants.
• D) Information Systems Audit and Control Association.

---

Definitions:

Accumulated Depreciation

The cumulative sum of depreciation expense allocated for a physical asset from the time it was first used.

Disposal

The elimination of an asset from the balance sheet, typically due to sale, loss, or obsolescence.

Machinery

Physical assets used in a business operation to manufacture or produce goods.

Gain on Disposal

Gain on disposal refers to the financial profit made from selling an asset for more than its carrying amount on the books.