According to the IIA's International Standards for the Professional Practice of Internal Auditing, the internal audit activity must ensure that auditors collectively possess all of the competencies necessary to fulfill the internal audit plan. This standard recognizes that not every auditor will have every skill needed for every engagement, but collectively, the team should cover all necessary competencies.References: Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing.

The most effective strategy to manage the risk of losses from foreign currency transactions related to the accounts payable process is using a hedging strategy. Hedging involves using financial instruments or market strategies to offset potential losses in investments. In the context of foreign currency transactions, hedging can protect against adverse movements in exchange rates, thereby stabilizing cash flows and reducing the unpredictability of foreign currency expenses.References: Financial management practices and risk management strategies.

Performing a surprise audit is a detective control strategy against fraud. Surprise audits can uncover irregularities and fraudulent activities that might not be detected through routine audit procedures. By their unexpected nature, they can serve as a deterrent against fraud and help identify breaches in internal controls.References: IIA guidance on control activities and fraud prevention

The risk created when a manager bypasses organizational policies and procedures to meet an organization's objective is best described as monitoring failure risk. This type of risk arises when there is insufficient oversight or ineffective controls that fail to detect or prevent departures from prescribed procedures, which could lead to non-compliance, inefficiencies, or other adverse outcomes.References: IIA guidance on risk categories and management control frameworks.

Before taking further action, the internal auditor should understand why management asked employees to act against policies and procedures. This could reveal underlying issues or misunderstandings that need to be addressed. References:
* IIA's International Standards for the Professional Practice of Internal Auditing.
* COSO Framework on Monitoring and Risk Assessment.