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According to the IIA's International Standards for the Professional Practice of Internal Auditing (Standards), when internal audit staff lacks the required knowledge or expertise to perform an engagement, the chief audit executive (CAE) should consider obtaining additional resources with the necessary expertise. This approach ensures that the assurance engagement can be conducted with the requisite level of competence and fulfills the standards' mandate for proficiency and due professional care (Standard 1210: Proficiency).References: IIA Standard 1210: Proficiency.

The most effective preventative control to reduce losses due to discrepancies between inventory and sales, suspected to arise from the abuse of cash register refunds and voids, would be to require a manager to use a reserved register code to approve voids or refunds. This control introduces a level of oversight and accountability, ensuring that refunds and voids are legitimately and appropriately authorized, thereby reducing the likelihood of fraudulent activities.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

Being denied access to necessary information such as expenditure and budget reports because they are considered confidential affects the authority of the internal audit activity. Authority, as granted by the audit charter, should include unrestricted access to all records and data required by the audit team to perform its duties effectively. Limitations on access impair the audit's scope and the auditors' ability to conduct thorough and complete audits. References: IIA Standard 1110: Organizational Independence, which stresses the importance of internal auditors having appropriate and unrestricted access to information.

According to IIA guidance, an appropriate role for the internal audit activity includes coaching management in responding to risks. This involves advising, counseling, and providing insights based on analyses and assessments in a way that adds value and improves an organization's operations without assuming management's responsibilities. Implementing risk responses, imposing risk management processes, or setting the risk appetite would compromise the independence of the internal audit function.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)