An auditor for a major retail company suspects that inventory fraud is occurring at three stores which have high costs of goods sold. Which of the following audit activities would provide the most persuasive evidence that fraud is occurring?

Once an audit report is drafted, the auditor's supervisor should review it primarily to ensure that all:

Which of the following is an advantage of an interim report?
I. An interim report provides timely feedback to the audit engagement client.
II. An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated.
III. An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed.
IV. An interim report increases the probability that corrective action will be initiated more quickly.

Which of the following is not a direct benefit of control self-assessment (CSA)?

An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?