Comprehensive and Detailed Explanation:
Electronic Data Interchange (EDI) automates the structured exchange of business documents (e.g., invoices, purchase orders) between organizations without human intervention. This reduces manual processing errors and accelerates transaction flow, ensuring seamless integration with business partners.
* ERP (A) integrates internal functions but does not directly enable partner-to-partner exchange.
* MRP (B) focuses on production and material planning.
* CRM (D) manages customer relationships but not transactional data exchange.
Therefore, the best technology to reduce errors and facilitate seamless inter-organizational transactions is EDI (C).

One of the primary drawbacks of using internal control questionnaires is the risk that management may not provide honest or accurate answers. This can occur due to a variety of reasons, including a lack of knowledge, intentional deception, or a misunderstanding of the questions. As a result, the responses may not accurately reflect the true state of the controls, leading to incomplete or misleading audit conclusions.
:
The Institute of Internal Auditors (IIA) Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000 IIA Standard 2310 - Identifying Information

Improper segregation of duties is a fundamental control weakness that significantly increases the risk of fraud.
When one individual has control over multiple stages of a financial transaction or operational process, it creates opportunities for fraudulent activities to occur and remain undetected. While incentives and bonus programs (Option B), employee concerns (Option C), and lack of an ethics policy (Option D) are also important indicators of potential fraud risk, they do not present as direct and immediate a vulnerability as improper segregation of duties.
:
IIA Practice Guide on Fraud Prevention and Detection in an Automated World.
IIA Standard 2120: Risk Management.

According to IIA guidance, a newly promoted chief audit executive (CAE) should prioritize the review of audit reports based on the significance of the findings indicated by the opinion statements. A graded positive opinion (1) suggests that the audit found strong controls with no significant issues, while a third-party opinion (4) typically involves external assessments that may not require immediate internal action. Therefore, these opinions would receive the lowest review priority. In contrast, negative assurance opinions (2) and limited assurance opinions (3) indicate potential issues or limitations in the effectiveness of controls, necessitating higher priority review to address any significant concerns promptly. References: IIA Standard 2410 - Criteria for Communicating, IIA Practice Advisory 2410-1

When an internal auditor identifies a major control weakness during a preliminary survey, the appropriate response is to bring it to the attention of the process owner for resolution. This approach aligns with the standards and guidelines provided by the Institute of Internal Auditors (IIA), particularly under the International Standards for the Professional Practice of Internal Auditing (Standards).
* IIA Standard 2120 - Risk Management:
* According to Standard 2120, the internal auditor must evaluate the effectiveness of the organization's risk management processes. Identifying and reporting control weaknesses is a key aspect of this evaluation. By bringing the issue to the attention of the process owner, the internal auditor ensures that those responsible for managing the process are aware of the risk and can take appropriate corrective actions.
* IIA Standard 2060 - Reporting to Senior Management and the Board:
* While it might seem logical to report directly to senior management (as option A suggests), the IIA recommends that the process owner be given the opportunity to address the issue first.
Standard 2060 emphasizes that significant risk exposures and control issues should be reported to senior management and the board, but only after they have been discussed with the appropriate process owners.
* IIA Standard 2440 - Disseminating Results:
* According to Standard 2440, the communication of audit results should be consistent with the objectives of the audit engagement. It is good practice to inform the process owner promptly so they can address the issue before the audit report is finalized. This approach helps in mitigating the risk at an early stage and ensures that the control weaknesses are appropriately managed.
* Ethical Considerations:
* The IIA's Code of Ethics requires internal auditors to act with integrity and to ensure that their communications are honest and constructive. Notifying the process owner immediately reflects a proactive and ethical approach to audit findings. It allows for timely corrective actions and demonstrates the auditor's commitment to improving the organization's control environment.
* Option A (Issue a final report to senior management): This step is premature at this stage of the audit.
Issuing a final report without allowing the process owner to address the issue could lead to unnecessary escalation and may undermine the collaborative nature of the audit process.
* Option C (Note the control weakness for discussion during the exit meeting): While discussing the issue during the exit meeting is part of the process, it is more effective to address the control weakness immediately rather than waiting until the exit meeting, where valuable time might be lost.
* Option D (Carry out an investigation for disciplinary action): This is beyond the internal auditor's scope unless the situation specifically warrants an investigation. The focus of the auditor should be on control improvements rather than disciplinary measures, which are typically managed by HR or legal departments.
Detailed Explanation:Why Not Other Options?