According to the IIA guidance, engagement supervisors' review notes are used during the audit process to ensure thoroughness and accuracy. Once these review notes have been addressed, they can be removed from the final documentation. This practice ensures that the final audit report is clear and concise, containing only the necessary documentation to support audit findings and conclusions. The review notes are considered part of the working papers during the review process but do not need to be retained in the final audit documentation once all issues have been resolved.
:
The Institute of Internal Auditors (IIA) Standard 2330 - Documenting Information: "Internal auditors must document relevant information to support the conclusions and engagement results." IIA Practice Guide on "Audit Documentation"

Comprehensive and Detailed Explanation:
According to IIA Standard 2440 and Practice Advisory, internal audit results must be communicated in a controlled and appropriate manner. When reports are to be shared outside the organization, the CAE must evaluate risks, consult with senior management and legal counsel, and restrict dissemination unless disclosure is legally required. Option A is misleading because the CAE must escalate unresolved risk acceptance to the board, not regulators unless mandated. Option B is incorrect since interim reports for urgent, high-risk issues are appropriate and sometimes necessary. Option D is inaccurate because boards may receive executive summaries, not necessarily full reports in every case. The correct requirement is Option C:
the CAE ensures external communications are controlled and aligned with laws and organizational policies.

The most effective time for an internal auditor to develop a risk and control matrix is during the planning phase of an audit engagement. This matrix helps in identifying the key risks and the controls in place to mitigate those risks, which is crucial for developing a focused and effective engagement work program.
IIA References:
* IIA Standard 2201: Planning Considerations requires internal auditors to consider significant risks and controls when planning the engagement. Developing a risk and control matrix at this stage ensures that the audit work is appropriately targeted at the most critical areas.
* The Practice Guide on Risk Assessment advises that creating a risk and control matrix during planning helps in structuring the audit to address identified risks effectively.

In internal auditing, reviewing the vendor master file for authorizations is a test to ensure that only authorized vendors are in the system, which directly relates to the effectiveness of control measures in place. This means verifying that the controls are effective in preventing unauthorized or fraudulent vendors from being added, thereby safeguarding the organization against potential risks such as fraud, unauthorized transactions, or compliance violations.
:
Institute of Internal Auditors (IIA), International Standards for the Professional Practice of Internal Auditing (Standards), Standard 2120 - Risk Management.

* A. The sample rate of occurrence plus the precision exceeds the acceptable error rate:Correct. If the sample rate of occurrence (estimated error rate in the sample) plus the margin of error exceeds the acceptable error rate, it indicates a potential issue. To refine the estimate and maintain the desired confidence level and precision, the sample size needs to be increased.
* B. The sample rate of occurrence is less than the acceptable error rate:If the sample rate is below the acceptable error rate, there is no immediate need to adjust the sample size.
* C. The acceptable rate of occurrence less the precision exceeds the sample rate of occurrence:This condition does not imply the need to increase sample size but rather suggests acceptable results.
* D. The sample rate of occurrence plus the precision equals the acceptable error rate:This indicates the estimate is at the threshold, but it does not necessitate increasing the sample size unless more precision is required.
CIA Exam Syllabus Reference:
Domain II: Risk Management and Control - Sampling and Error Analysis.