When an internal auditor applies due professional care to perform an assurance
engagement,which of the following must she consider?
1.Findings of the last audit engagement performed.
2.Probability of significant errors,irregularities,or noncompliance.
3.Extent of work needed to achieve engagement objectives.
4.Cost of the engagement versus the potential benefits.

An internal auditor for a large bank is reviewing the collectability of a loan that is secured by real property. The best evidence of the loan's collectability would be:

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Which of the following statements is correct regarding corporate compensation systems and related bonuses?
I. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
II. Compensation systems are not part of an organization's control system and should not be reported as such.
III. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

Which of the following best describes the assessment of risks?