If the chief audit executive believes that senior management has accepted a level of residual risk that is unacceptable to the organization, they should:

An auditor decides to vouch a sample of ledger entries back to their original documentation. In terms of whether all transactions had been recorded, this test would be:

Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

Which of the following situations justifies the release of an interim report to management and the board?
- The internal auditor is convinced that the audit observations require immediate attention. - The internal auditor would like to communicate a change in engagement scope for the activity under review. - The internal auditor notes that the engagement may extend over a longer time period. - The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.

An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?
I . Division A's production level declined by 15 percent.
II . Division A could have sold more products than it produced.
III . Division A usually sells all of the products that it produces.