Reducing costs by identifying opportunities to reduce wastage and inefficiency.

Identification of possible problem areas in future activities.

Management involvement in and support of performance auditing.

Evaluating the performance of individuals and sections in an organisation.

Management must select all engagements because the internal audit function may not assess risks independently.

Emerging operations should be excluded until they have at least one year of transactional history.

Accept only if the appetite is copied from a comparable organisation.

Accept, 

because

internal audit's risk-based role includes ownership of risk appetite and

responses.

Explain 

that

management and the board retain decision-making responsibility, while internal

audit may evaluate the process and provide objective advice and assurance.

Decline 

all involvement, because internal audit may not provide

advice on risk management.

Risk includes 

the positive or

negative effect of uncertainty on objectives, so both opportunity and adverse

exposure are relevant.

The director is correct unless the potential loss can be measured in monetary terms.

Risk exists only after an uncertain event has occurred and affected reported results.

The director 

is correct because opportunities are considered

strategy, not risk.

Inform the chief audit executive(CAE) about the limitations in technical expertise and request that the team be supplemented with or supervised by someone with specialised knowledge in derivatives valuation and risk.

Focus the engagement only on governance and documentation instead of valuation and risk metrics, arguing that this narrower scope falls within the auditor’s current skill set.

Proceed with the engagement alone, relying on high-level process understanding and generic checklists, and avoid delving into technical valuation details.

Decline the engagement entirely and insist that it be outsourced to an external firm because the auditor is not currently an expert in derivatives.

Request t

he treasury dealers to provide the assurance conclusion on their own

positions.

Proceed 

without assistance because using a specialist would

compromise internal audit independence.

Obtain 

the

required expertise, including an appropriately qualified external expert where

necessary, and plan the work with due care.

Remove 

derivatives from scope without informing the board or

audit committee.

Unit-price, because payment depends on measured quantities.

Lump-sum, because the total price is fixed for the defined scope.

Rental, 

because

use of the completed warehouse occurs over time.

Cost-plus, because actual costs determine the final amount.

The clinic is economical 

and efficient because achievement of the target

overrides resource use.

The clinic is effective 

in relation to the treatment target, but the evidence

raises separate concerns about economy and efficiency.

No performance 

conclusion can be drawn because the three Es may never be evaluated

together.

The clinic is ineffective 

because any budget overrun means the objective was not

achieved.