B. A hazardous materials audit may include recommending an environmental management system as a part of policies and procedures, verifying the existence of "cradle to grave" tracking records for hazardous materials, and evaluating the cost provided for in an accrual account for environmental liability for hazardous materials.

C. Using consultants to avoid self-incrimination of the firm in the event illegalities are detected in an environmental audit is neither appropriate nor necessary. There is no requirement for internal auditors to report to external parties any violations of environmental laws they may discover.

D. Recommending an environmental management system as a part of policies and procedures and verifying the existence of "cradle to grave" tracking records for hazardous materials are not the only items listed that could be included in a hazardous materials audit.