According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

Risk assessments can vary in format, but generally include:
I.A description of identified risks.
II.
Tests of audit controls.
III.
A system of rating risks.
IV.
Sample size identification.

Which of the following are core responsibilities to be included in the internal audit charter?
1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
2. Determine the adequacy and effectiveness of the organization's systems of internal accounting and operating controls.
3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.
4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

Which of the following would most likely be considered a red flag for fraud?

The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?