Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?

CORRECT TEXT
A fast-food company is developing a computer simulation involving arrival time at a drive-through restaurant. The distribution for arrival times is:
Time Single-Digit Random Between Arrivals Probability Number Assigned 1 minute
0.1 0 2 minutes
0.2 1, 2 3 minutes
0.3 3, 4, 5 4 minutes
0.4 6, 7, 8, 9
Six random numbers are selected to represent the arrival of six cars: 1, 6, 9, 0, 5, 6. The mean time between arrivals for these cars, in this run of the simulation model, is:

Which of the following statements is correct regarding the use of a program evaluation and review technique (PERT) model?
* It makes use of a probability model to arrive at a realistic estimate of time necessary for completion of the audit engagement.
* It requires that activities are performed in sequence such that each task is completed before the commencement of the next activity.
* It remains fixed once completed to act as a baseline for measuring the performance of the audit staff following completion of the engagement.
* It begins with the auditor-in-charge identifying the overall scope and then breaking down the audit engagement into identifiable activity units.

An audit of a company's accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:

An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?