1. Which of the following represents the most competent evidence that trade receivables actually exist?

a.Positive confirmations.

b.Sales invoices.

c.Receiving Reports.

d.Bills of lading.

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2. The tasks performed during an internal audit assurance engagement should address the following questions:

1. What are the reasons for the results?

2. How can performance be improved?

3. What results are being achieved?

The chronological order in which these questions should be addressed is:

a.3, 1, 2

b.1, 3, 2

c.3, 2, 1

d.2, 3, 1

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3. Once an observation is identified by the internal auditor, it should be:

a.Documented in the working papers.

b.Discussed with the audit committee.

c.Included in the final audit report.

d.Scheduled for follow-up.