1.In combined assurance, there are four recommended ways of coordinating combined assurance. Which way is not preferred from an independence and objectivity point of view: a. Alignment through activities. b. Integrated audits c. Functional integration d. Process integration 2. The CAE wants to require all staff auditors to possess specialised training in accounting and a professional auditing certification such as Certified Internal Auditor (CIA) or Charted Accountant (CA) (SA). One of the disadvantages of imposing this requirement is that this policy: a. would prevent the internal audit activity from using external service providers when it did not have the knowledge, skills and competencies required in certain engagements. b. could limit the range of services that could be performed due to the internal audit activity's narrow expertise and background. c. does not promote the professionalism of the internal audit activity. d. might negatively affect the internal audit activity's ability to perform quality engagements relating to the organisation's financial and accounting systems. 3. You are the chief audit executive (CAE) of Xtract Mining Ltd, a recently listed company that is one of the major coal-mining companies in the South African market. You are currently busy compiling the internal audit charter to present to the audit committee for approval. Indicate whether the following responsibilities should be included in or excluded from the internal audit charter. The chief audit executive will report to the board/audit committee, at least annually, on the organisational independence of the organisation. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.

The chief audit executive will report periodically to senior management and the board/audit committee regarding the internal audit activitys plan and its performance relative to its plan. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.

The chief audit executive has the responsibility to follow up on engagement findings and corrective actions, and report periodically to senior management and the board/audit committee any corrective actions not effectively implemented. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.

The chief audit executive has the responsibility to submit, at least quarterly, to senior management and the board/audit committee a risk-based internal audit plan for review and approval. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.

The chief audit executive will have unrestricted access to, and communicate and interact directly with, the board/audit committee, with management present. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.

Internal auditors will disclose any impairment of independence or objectivity, in fact or appearance, to appropriate parties. A. Correct responsibility-should be included in the internal audit charter. B. Incorrect responsibility-should be excluded in the internal audit charter.