New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

Which of the following is an advantage to using the questionnaire approach when conducting risk and control self assessments?

Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
1. A supervisor's initials on each workpaper.
2. An engagement workpaper review checklist.
3. A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
4. Performance appraisals that assess the quality of workpapers prepared by auditors.

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?