IIA-CHAL-QISA Exam - Topic 2 Question 20 Discussion

Actual exam question for IIA's IIA-CHAL-QISA exam

Question #: 20
Topic #: 2

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?

AOn a rainy day. total sales are greater than expected when compared to the cost of ingredients used

BOn a sunny day. total sales are less than expected when compared to the cost of ingredients used.

CBoth total sales and cost of ingredients used are greater than expected.

DBoth total sales and cost of ingredients used are less than expected.

Show Suggested Answer

Suggested Answer: C

ISO 31000 Context: ISO 31000 provides guidelines on risk management, emphasizing the importance of understanding the external context.

External Context: This includes external factors such as regulatory and competitive environments that can impact the organization's risk profile.

Regulatory Environment: Understanding regulations helps the organization ensure compliance and avoid legal risks.

Competitive Environment: Analyzing the competitive environment allows the organization to anticipate market changes and manage competitive risks.

ISO 31000 Risk Management Guidelines.

by Maxima at Jan 13, 2025, 08:20 AM

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Chantell

3 months ago

Wait, are we sure about the model? Seems off.

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Heidy

3 months ago

D is definitely a red flag for theft!

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Ressie

4 months ago

C seems odd, how can both be greater?

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Rikki

4 months ago

I think B makes more sense, less sales on sunny days.

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Taryn

4 months ago

A rainy day with higher sales? Sounds fishy!

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Willetta

4 months ago

I feel like option D makes sense too, but I’m not confident. If both sales and costs are low, it could indicate something wrong, right?

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Shanice

4 months ago

I practiced a similar question where we looked for discrepancies in sales versus costs. I think option A could be a red flag for theft.

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Kimbery

5 months ago

I’m not entirely sure, but I think if both sales and ingredient costs are higher than expected, it might suggest something fishy is going on.

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Casandra

5 months ago

I remember discussing how unusual sales patterns could indicate theft, especially if sales are high on rainy days when they should be lower.

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Gracia

5 months ago

Hmm, I'm a little unsure about this one. The relationships between sales, weather, and ingredients are throwing me off a bit. I'll need to really think through how those factors could point to potential theft. Maybe I should jot down some notes and examples to work through the logic.

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Nickole

5 months ago

Alright, this seems pretty straightforward. If sales are higher than expected on a rainy day, that could mean employees are stealing and pocketing the extra cash. Or if sales and ingredient costs are both higher than expected, that's another red flag. I feel pretty confident I can tackle this one.

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My

5 months ago

Okay, let's see here. The question is asking about conditions that would indicate employee theft, so I need to think about how that might show up in the data. I'm guessing I want to look for sales and ingredient costs that don't match up with the expected patterns.

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Dolores

5 months ago

Hmm, this is an interesting one. I think I need to focus on the key relationships in the question - the direct relationship between sales and ingredient cost, and the inverse relationship with rainy days. I'll need to carefully consider how those factors might indicate employee theft.

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Cheryl

10 months ago

Option A is definitely the way to go. If the numbers don't add up, it's time to investigate. After all, you can't hide a stolen croissant under an umbrella.

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Joni

9 months ago

User 3: After all, you can't hide a stolen croissant under an umbrella.

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Callie

9 months ago

User 2: If the numbers don't add up, it's time to investigate.

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Paris

9 months ago

User 1: Option A is definitely the way to go.

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Deonna

10 months ago

Ha! Looks like the bakery's got a bunch of budding magicians working in the back. Turning rainy days into sunny sales figures? I wonder if they can teach me that trick.

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Daryl

9 months ago

Arlette: That would be quite the magic trick.

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Arlette

9 months ago

User 2: Or maybe they're just cooking the books.

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Alberta

10 months ago

User 1: Maybe they're just really good at predicting sales.

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Dorian

10 months ago

Hmm, I'm not sure. Couldn't it also be that the bakery's marketing team came up with an amazing rainy-day promotion? I'd want to look into that before jumping to conclusions about theft.

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Laura

10 months ago

I agree with Juan. The auditor should look for discrepancies between the expected and actual sales figures, especially when the weather is supposed to have a negative impact on sales.

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Taryn

9 months ago

A: Yes, it's definitely something the auditor should look into.

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Frank

10 months ago

B: That could be a sign of employee theft, right?

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Elena

10 months ago

A: On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.

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Juan

10 months ago

Option A is correct. If total sales are greater than expected on a rainy day, it could indicate employee theft of food, as the model predicts lower sales on such days.

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