QUESTION: 229

At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created. The auditor should

Proceed with the existing program since this was the original scope of work that was approved.
Modify the audit program and proceed with the engagement.
Consult with management to verify the interest rate change and proceed with the engagement.
Determine the effect of the interest rate change and whether the program should be modified.

Answer(s): D

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QUESTION: 230

Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?

The total number of cars approved.
The ratio of cars rejected to total cars inspected.
The number of cars inspected per inspection agent.
The average amount of fees collected per cashier.

Answer(s): C

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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?

On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
Both total sales and cost of ingredients used are greater than expected.
Both total sales and cost of ingredients used are less than expected.

Answer(s): B

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