During an Engagement, an Internal Auditor Decided to Use Variance

question 283

Multiple Choice

During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

• A) Report the deviations immediately to the audit committee.
• B) Gather additional information to determine the cause of the deviations.
• C) Conclude that the budget was unreasonably set and accept the deviations.
• D) Perform alternative forms of analytical procedures which provide no deviations.

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Definitions:

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to biases or prejudgment against them due to perceived differences.

Attitude Polarization

The phenomenon where a disagreement becomes more extreme as the different parties consider evidence on the issue.

Informational Influence

Going along with the crowd because you think the crowd knows more than you do.

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Definition: Legislative changes aimed at restructuring government welfare programs, typically with goals such as reducing dependency on government assistance and encouraging employment.