A. Larry David was recently hired as the new CAE for Kramer Enterprises. Kramer has received clearance from the SEC to issue its shares to the public, and accordingly anticipates being a publicly traded company in the second quarter of next year. Larry was advised by the Board's Audit Committee, that the internal audit department must, among other things, set benchmarks to evaluate the quality of the work it performs. Please describe three ways by which the quality of the work of the internal audit department may be assessed (include two internal methods and an external method).

B. An internal audit team composed of four members plans to undertake an assurance engagement to evaluate the operations of the corporation's advertising department within the marketing operation. (The company is in the snack food business and is the largest US competitor of Pepsi Brands.) This department has never been audited before, but because it spends nearly $SO million on television ads, promotions at sporting events, and printed media, management would like it to be audited. Please discuss three matters the team might consider during the Planning stage of this engagement.