2) Internal auditing is going to be performing an assurance engagement dealing with controls over production and inventory. Some of the items to be covered in the engagement include:

Determine if there is an issue with excess, obsolete or unsaleable inventory

Determine if there are inventory shortfalls vs. what is shown in the general ledger

Determine if inventory write-offs have appropriate approval and support

Determine if there are material issues with the quality of the company's finished products.

For each item, what two best testsare the most appropriate to gather the required evidence. Why?.What evidence should be obtain from each test.

3)The Foundation for Critical Thinking states that all subjects have a fundamental thought process.In order to understand the thought process, they recommend raising some questions.

a)What viewpoint is fostered in this field (i.e., how do internal auditors tend to view the world)?

b)What kinds of problems do they try to solve?

c)How do they go about gathering information?

d) What types of judgments and assumptions do internal auditors make?

4)Explain whether the following statement is true or false and why:

For every control selected for testing, the internal auditor requires the same quality (relevance and reliability) and quantity (sufficiency) of audit evidence.

5) a) When and in what ways audit engagement communications occur?

b)What actions regarding audit engagement observations must the internal audit function take after the final engagement communication is disseminated?

6) Describe four barriers to implementing data analysis tools in internal auditing.