What are the audit's objectives relating to systems development?
The auditor's objectives are to ensure that (1) systems development activities are applied consistently and in accordance with management's policies to all systems development projects; (2) the system as originally implemented was free from material errors and fraud; (3) the system was judged necessary and justified at various checkpoints throughout the SDLC; and (4) system documentation is sufficiently accurate and complete to facilitate audit and maintenance activities.
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The rule of addition applies when someone creates a replication of an item already patented but adds some sort of extra feature or improvement. That new extra-feature item will not be considered a patent infringement.
Answer the following statement true (T) or false (F)
The revenue recognition principle:
A. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. B. Prescribes that accounting information is based on actual cost. C. Prescribes that a company record the expenses it incurred to generate the revenue reported. D. Prescribes that a company report the details behind financial statements that would impact users' decisions. E. Provides guidance on when a company must recognize revenue.
A merchandiser's classified balance sheet reports merchandise inventory as a current asset.
Answer the following statement true (T) or false (F)
What does operating leverage reveal about a company?