An Internal Auditor Makes a Series of Observations When Performing

question 209

Multiple Choice

An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?

• A) Cash or accounts receivable has decreased.
• B) The gross margin has decreased.
• C) The division produced fewer items this year than in prior years.
• D) The gross margin has increased.

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Definitions:

Chronotypes

Individual differences in circadian preference, influencing preferred sleep and activity periods.

Psychologist

A professional skilled in the science of mind and behavior, dealing with how people think, feel, and behave.

Alpha Wave

Type of brain wave that is associated with relaxed, alert states of consciousness, typically occurring when one is awake but relaxed.

Brain Activity

The functioning and processes occurring within the brain, including neuronal and biochemical events.