Which of the following conclusions would be appropriate for a beginning auditor performing an audit of a payroll department?

An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?

An auditor evaluating excessive product rejection rates should investigate:
I.Communication between sales and production departments on sales returns.
II.
Volume of product sales year-to-date in comparison to prior year-to-date.
III.
Changes in credit ratings of customers versus sales to those customers.
IV.
Detailed product scrap accounts and accumulations.

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

Which of the following is the most common method management can use to manage risk within its risk appetite?