Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?

Which of the following is most likely to be judged as a significant residual risk that would exceed the organization's acceptable risk level?

An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in:
1. Identifying products for which management has not been attuned to changes in market demand.
2. Identifying potential problems in purchasing activities.
3. Identifying obsolete inventory.

A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors:
the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses:
Risk Reduction
Cost Savings
Changes
High (3)
Medium (2)
Low (1)
High (3)
Low (1)
High (3)
Low (1)
High (3)
Medium (2)
Medium (2)
Medium (2)
High (3)
If the organization has asked the CAE to consider the cost savings factor to be twice as important as any other factor, which engagements should the CAE pursue?

According to IIA guidance, which of the following strategies would be the least effective in helping a chief audit executive build a stronger relationship with the board?