The practice of supervisors providing feedback to internal auditors after reviewing workpapers demonstrates the exercise of due professional care within the internal audit activity. This feedback mechanism helps ensure the quality of audit work and adherence to professional standards, and it promotes continuous improvement and development of audit staff. This aligns with the IIA's definition of due professional care, which includes diligence, attention to detail, and continuous professional development.
IIA Standard 1300: Quality Assurance and Improvement Program, which outlines the requirements for due professional care.

The responsibility of the board of directors with regard to risk management throughout the organization is to monitor the organization's overall risk activities in relation to its risk appetite and other risk criteria. The board plays a crucial oversight role, ensuring that risk management processes are effectively integrated and aligned with the strategic objectives and risk tolerance of the organization.
Corporate governance standards and IIA guidance on the role of the board in overseeing organizational risk management activities.

The best technique to detect fictitious vendors in the organization's computer system is to run checks to find matches between vendor and employee addresses. This method is effective because fictitious vendors often have addresses that match those of employees creating them. This kind of analysis targets the direct linkage between fraudulent activities and internal entities, which is a common red flag in vendor fraud scenarios.
Association of Certified Fraud Examiners (ACFE) - Techniques for Fraud Detection

The scenario describes a substantial increase in cancelled proposals, which could indicate fraudulent activity.
One potential fraud risk scenario is that some electricians might be offering clients reduced fees if they pay with cash, leading to off-the-record transactions. This can result in the cancellation of official proposals and lost revenue for the company, as these transactions might not be recorded in the company's financial systems.
This type of fraud involves bypassing the formal processes and price lists, which impacts the integrity of the procurement and sales processes.
IIA Practice Guide: Fraud and Internal Audit
COSO Fraud Risk Management Guide

Periodic evaluations are complementary to ongoing monitoring in an organization ' s risk management process. The frequency and extent of these evaluations often depend on findings from ongoing monitoring, which may highlight areas needing more in-depth review or indicate that existing controls are functioning effectively. This dependency ensures that periodic evaluations are targeted and efficient.
Institute of Internal Auditors (IIA) - Guidance on Risk Management and Monitoring Top of Form