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.

Question

Quizplus · Accepted Answer

In a declining economy, consumers typically reduce spending, leading to a decrease in sales volume for businesses, including supermarkets.

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