Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
I.A supervisor's initials on each workpaper.
II.
An engagement workpaper review checklist.
III.
A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
IV.
Performance appraisals that assess the quality of workpapers prepared by auditors.

An internal auditor is reviewing purchases made through the organization's corporate credit card program. Which of the following statements best describes a root cause of a deficiency?

An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

In a review of an electronic data interchange application using a third-party service provider, the auditor should:
I.Ensure encryption keys meet International Organization for Standardization (ISO) standards.
II.
Determine whether an independent review of the service provider's operation has been conducted.
III.
Verify that only public-switched data networks are used by the service provider.
IV.
Verify that the service provider's contracts include necessary clauses, such as the right to audit.

An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if:
I. In the opinion of the CAE, the level of residual risk assumed by senior management is too high.
II. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.
III. The cost of modifying the sales system to include a preventive control is less than $100,000.