Fact Pattern: A medium-sized municipality provides 8.5 billion gallons of water per year for 31,000 customers. The water meters are replaced at least every 5 years to ensure accurate billing. The water department tracks unmetered water to identify water consumption that is not being billed. The department recently issued the following water activity report: Activity Month 1 Month 2 Month 3 Actual 1st Quarter 1st Quarter Goal Meters Replaced 475 400 360 1,235 1,425 Leaks Reported 100 100 85 285 Leaks Repaired 100 100 85 285 100% Unmetered Water 2% 6% 2% 4% 2% Question Based on the activity reported for the unmetered water, an internal auditor would conclude that A. Established operating standards are understood and are being met. B. Further audit investigation of unmetered water is not warranted. C. The deviation in Month 2 was probably not corrected. D. The operating standard should be changed