Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

A. The CAE initials and dates every working paper after it has been reviewed.

B. The CAE completes an engagement working paper checklist.

C. The CAE prepares a memorandum discussing the results of the working paper review.

D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.

According to IIA guidance, which of the following should be formally documented in the internal audit charter?

A. The internal audit activity's responsibility for imposing risk management processes.

B. The internal audit activity's responsibility for the organization's governance framework.

C. The nature of consulting services provided by the internal audit activity.

D. The budgeting process for the internal audit activity.

An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.

B. Refrain from indicating that the internal audit activity operates in conformance with the Standards until

another external assessment confirms that the significant areas of nonconformance have been

addressed.

C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.

D. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.

During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?

A. Definition of Internal Auditing.

B. MA Standards.

C. Internal audit charter.

D. The IIA's Code of Ethics.

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

A. Immediately notify management of the area under review and the other internal auditors involved in the engagement.

B. Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

C. Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

D. Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.