The following are true-life situations about internal auditors in Texas. Answer the questions for each.

The Internal auditors office at the Dallas school district preliminarily found that there was $334,000 of overbilling on $1.2 million contracts. However, the report was not issued because the CAE resigned in February. This happened after the districts chief operating officer began work on a series of policy changes to reduce the authority of the internal audit department and school district board members approved changes to the procurement process that allowed administrators greater control of contracts. The school district has a history of trouble in its procurement and contracting dating back to the mid-2000s. This led to a dispute where the board appointed a temporary CAE but argued that a truly independent internal auditor function would be better served by farming out an internal audit to a CPA firm. Others argued that the CPA firm would be more focused on internal consulting than internal audit functions.

Required: Using the IIA Standards, identify which standards were upheld in this case and which were abused or breached and should have been handled differently.