To improve the approach to reporting the results of the QAIP, the results must also be shared with the external auditors. This sharing of information helps external auditors determine the extent to which they can rely on the work of the internal audit activity. This not only enhances coordination between internal and external audit functions but also improves the overall audit quality by enabling external auditors to better understand the internal audit environment and its effectiveness.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, the most appropriate action would be to request the internal audit activity to perform an ethics-related assurance engagement. This type of engagement would directly assess the organization's ethical culture and practices, providing the board with a detailed and objective evaluation of ethics awareness and related issues throughout the organization.References: IIA's guidance on the role of internal auditing in organizational ethics.

Skimming is the type of fraud that involves an employee accepting cash payments and failing to record the sales, thereby diverting the cash for personal use. This kind of fraud occurs before the transaction is recorded in the accounting records, making it particularly stealthy since it does not directly affect the accounting system.References: Fraud classification and types in internal audit literature

It would be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function if, prior to becoming the CAE, the CAE was the payroll manager. This scenario poses a conflict of interest and impacts the objectivity required for assurance services, as the CAE might have inherent biases or a conflict due to previous roles and responsibilities within the payroll function.References: The Institute of Internal Auditors (IIA) - Code of Ethics and International Standards for the Professional Practice of Internal Auditing.

Considering the possibility of noncompliance or irregularities at all times during an engagement best demonstrates an internal auditor's due professional care. This proactive approach to skepticism ensures that the auditor remains vigilant and prepared to identify any indications of noncompliance or irregular activities, which is central to upholding the integrity of the audit process.References: IIA standards on due professional care, which emphasize the importance of maintaining an attitude of professional skepticism throughout the audit process.