An Internal Auditor Is Performing Analytical Reviews as Part of an Audit

question 312

Multiple Choice

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

• A) Higher inventory turnover.
• B) Higher operating margin.
• C) Lower obsolete stock disposal.
• D) Lower sales volume.

---

Definitions:

Organizational Goals

Objectives or targets that an organization aims to achieve, guiding its strategic and operational activities.

Merit Pay Raises

Increases in salary given to employees based on their performance, often determined through evaluations and assessments.

Performance Goals

Specific, measurable objectives set to evaluate the effectiveness of employees or company processes.

Incentive Plans

Programs designed by employers to motivate and reward employees for exceeding work performance goals.