It is imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff to ensure that the resources needed to complete the audit plan are available. By maintaining a well- qualified audit team, the CAE ensures that the internal audit activity is equipped to address the range of risks and controls that the audit plan encompasses, thereby fulfilling its responsibilities effectively.
IIA guidance on human resources management within internal audit, which emphasizes the importance of continuing education and staff development to meet the organization's audit needs.

When assessing fraud risks, internal auditors should first consider any prior fraud investigations related to the engagement. This approach helps in understanding the historical context of fraud within the organization and identifying patterns or recurring issues that need attention. Reviewing prior investigations (Option B) is a foundational step as it provides a basis for understanding past incidents and informs the assessment of current fraud risks. This is in line with the guidance provided by the IIA, which emphasizes understanding the history of fraud as a critical part of the risk assessment process.
IIA Practice Guide: Internal Auditing and Fraud
IIA Standards, Standard 1210.A2: Internal auditors must have sufficient knowledge to evaluate the risk of fraud

The primary responsibility of the internal audit activity within a risk and control framework is to verify that management has met its responsibility for implementing effective controls. This aligns with the IIA's definition of the internal audit function's role, which is to provide independent and objective assurance that an organization's risk management, governance, and internal control processes are operating effectively.
The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing.

An example of an application control specifically involves the software or system used to process information. A two-stage authentication process to access customer information is an application control because it involves the authentication mechanisms within the application software to secure access to sensitive data. This control helps in verifying the identity of users and ensuring that access to critical data is restricted to authorized personnel only.
IT Governance Institute's COBIT Framework.

Segregation of personnel duties is a control that is designed to prevent an undesired activity from happening, such as errors, fraud, or misuse of resources. It means dividing the tasks and responsibilities related to a process or activity among different people, so that no one person has complete control over it. This reduces the opportunity and incentive for anyone to manipulate or falsify the data or transactions, and increases the chances of detection if they do.
References:
- Preventive Controls: What Are They & Why Are They Important?
- Segregation of Duties - The Institute of Internal Auditors or The IIA
- Segregation of Duties - Wikipedia