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A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
Which of the following actions by an organization's board would potentially impair the internal audit activity's independence?
Which of the following actions does a competency assessment tool help the chief audit executive perform?
Which of the following statements is true regarding risk management frameworks?
Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?
Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?
How can an Internal audit activity contribute to Its organization's risk assessment process?

Question 621 - IIA-CIA-Part1 discussion

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According to HA guidance, which of the following would best support the internal auditor's conclusion that the organization's risk management processes are effective?

A.

The organization has identified all applicable operational and financial risks.

Answers
A.

The organization has identified all applicable operational and financial risks.

B.

The organization has documented its strategic and business objectives.

Answers
B.

The organization has documented its strategic and business objectives.

C.

The organization has selected risk responses aligned with its risk appetite.

Answers
C.

The organization has selected risk responses aligned with its risk appetite.

D.

The organization has documented risk information pertinent to its business.

Answers
D.

The organization has documented risk information pertinent to its business.

Suggested answer: C

Explanation:

According to the guidance from The IIA (International Professional Practices Framework - IPPF), the most robust support for concluding that an organization's risk management processes are effective is the alignment of selected risk responses with the organization's risk appetite. This indicates that the organization not only understands its risks but also manages them in a manner consistent with its capacity and willingness to accept risk. It reflects a mature risk management process where risks are identified, assessed, and managed in alignment with strategic objectives and risk appetite, ensuring that the organization is not taking on more risk than it can handle or than is acceptable to its stakeholders.

Reference:

IIA Practice Guide on Assessing the Adequacy of Risk Management Processes.

COSO Enterprise Risk Management Framework.

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asked 03/11/2024
RANA MANSOUR
33 questions
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