An internal audit of warehouse inventory revealed no material deficiencies.

The internal auditors violated the standard for due professional care because they did not detect the fraud, even though it occurred during the period that was reviewed.

The internal auditors should have had sufficient knowledge of fraud to identify red flags indicating possible fraud.

The internal auditors could not have detected the fraud due to collusion among employees in the inventory unit.

The internal auditors are not responsible for considering fraud risk, which is a management responsibility.