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IIA Internal Audit Engagement IIA-CIA-Part2 Question # 163 Topic 17 Discussion

IIA Internal Audit Engagement IIA-CIA-Part2 Question # 163 Topic 17 Discussion

IIA-CIA-Part2 Exam Topic 17 Question 163 Discussion:
Question #: 163
Topic #: 17

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days What conditions would an auditor look for as an Indicator of employee theft of food from a specific store?


A.

On a rainy day. total sales are greater than expected when compared to the cost of ingredients used


B.

On a sunny day. total sales are less than expected when compared to the cost of ingredients used.


C.

Both total sales and cost of ingredients used are greater than expected.


D.

Both total sales and cost of ingredients used are less than expected.


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