The newly appointed chief audit executive (CAE) of a large multinational corporation, with seasoned internal audit departments located around the world, is reviewing responsibilities for engagement reports.
According to IIA guidance, which of the following statements is true?

Which two of the following considerations must an internal auditor take into account while planning an audit of an accounting system/application that has been in use for the last five
years?
The level and manner of linkages between the business' mission, objectives, and structure and the accounting system/application.
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Presence or absence of computerized and manual controls that address risks.
Identification of risks at the application level, e.g. availability and security of the
system.
Testing of the system/application for bugs and errors.
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Which of the following would be a red flag that indicates the possibility of inventory fraud?
I.The controller has assumed responsibility for approving all payments to certain vendors.
II.
The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III.
Sales commissions are not consistent with the organization's increased levels of sales.
IV.
Payments to certain vendors are supported by copies of receiving memos, rather than originals.

A corporate merger decision prompts the cruel audit executive (CAE) to propose interim changes lo the existing annual audit plan to account for emerging risks. When of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan?

Which of the following is a preventive control strategy against fraud?