A manufacturing organization is considering a merger with a similar firm, and requests that the chief audit executive (CAE) perform a due diligence audit. During the preliminary survey, the CAE notes that inventory management is a high risk area. In consultation with the external auditors and legal advisors, the CAE learns that they share those concerns. Which of the following is the CAE's best course of action?

To compete in the global market, an organization is restructuring and consolidating many of its divisions. Prior to the consolidation, senior management requested assistance from tie internal audit activity. Which of the following consulting services would be most appropriate in this situation?

What is the primary factor that determines the depth and breadth of audit follow-up?

Which of the following would be a red flag that indicates the possibility of inventory fraud?
I.The controller has assumed responsibility for approving all payments to certain vendors.
II.
The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III.
Sales commissions are not consistent with the organization's increased levels of sales.
IV.
Payments to certain vendors are supported by copies of receiving memos, rather than originals.

What would be used to determine the collectability of accounts receivable balances?