In which of the following situations would an internal control questionnaire best suit the internal auditors purpose?

a. The auditor wants to receive mid-level management insight on how to improve hiring practices

b. The auditor wants to obtain information on whether adherence to approval matrices is actually taking place in different maintenance units

c. The auditor wants to gain assurance that inventory counts are conducted in accordance with established procedures

d. The auditor wants to assess whether different subsidiaries apply centrally established procurement rules in the same manner

Several weeks after an audit report was issued concerning the organizations investment management process, management informs the chief audit executive (CAE) that a reported trading loss of $5 million was actually $50 million. The report has already been given to the securities commission to meet reporting obligations. According to IIA guidance, which of the following responses is most appropriate?

a. The CAE must issue a corrected report to all those who received the original report

b. The CAE is not required to take action, as the report has already been filed with the commission

c. The CAE should issue an apology to the audit committee and formally retract the report

d. The CAE should advise senior management of the error and recommend informing the securities commission immediately