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.

Which of the following is a preventive control?

A. Creating an audit trail.

B. Placing controls on physical access to inventory.

C. Reconciling purchase orders with approvals.

D. Reviewing expense accounts for irregularities.

Which of the following risk management activities is most appropriate for an internal auditor to undertake?

A. Impose risk management processes.

B. Coordinate risk management activities.

C. Implement risk responses on management's behalf.

D. Review the management of key risks.

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.