Final answer:
For entities with an internal audit function, the auditor should inquire about the internal auditors' views on fraud risks, procedures performed to identify fraud, management's response to findings, and any knowledge of fraud or suspected fraud. Therefore, all the options are correct.
Step-by-step explanation:
The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively.
For entities that have an internal audit function, the auditor should inquire of appropriate internal audit personnel about several things:
- The internal auditors' views about the risks of fraud: The auditor should ask the internal auditors for their opinions on the likelihood and potential impact of fraud occurring within the organization.
- Whether internal auditors have performed any procedures to identify or detect fraud during the year: The auditor should inquire about any specific actions taken by the internal auditors to investigate and uncover potential instances of fraud.
- Whether management has satisfactorily responded to any findings resulting from these procedures: The auditor should ask whether the management team has addressed and resolved any issues or recommendations brought to their attention by the internal auditors.
- Whether the internal auditors have knowledge of any fraud or suspected fraud: The auditor should inquire if the internal auditors are aware of any fraudulent activities or suspicions within the organization.