2. Monitoring is an important component of internal control. Which one of the following items would not be an example of monitoring? (2 Points) Data processing management regularly generates exception reports for unusual transactions or volumes of transactions and follows up with investigation as to causes. Management regularly compares divisional performance with budgets for the division. Management has asked internal auditing to perform regular audits of the controls over cash processing. Data processing personnel regularly reconcile batch control totals for items processed with batch controls for items submitted. 18. The IIA Standards require internal auditors to have the knowledge, skills and disciplines essential to performing an audit. Which of the following is true considering the level of knowledge or skill required by the Standards? Internal auditors must I. Be proficient in the application of auditing standards and procedures to specific situations without extensive recourse to technical research and assistance. II. Be proficient in accounting principles when auditing the financial records and reports of the organization. III. Be proficient in applying knowledge of accounting and computerized information systems to specific or potential problems. I (2 points) I and II only I, II and III. I and Ill only. I only. 19. Which of the following best describes an auditor's responsibility after noting some indicators of fraud? (2 points)