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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 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?
Which of the following statements is true regarding risk management frameworks?
How can an Internal audit activity contribute to Its organization's risk assessment process?

Question 678 - IIA-CIA-Part1 discussion

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Which of the following statements is true regarding the importance of risk management?

A.

Risk management ensures the ability to eliminate potential hazards to the organization.

Answers
A.

Risk management ensures the ability to eliminate potential hazards to the organization.

B.

Risk management includes consideration of potential opportunities for the organization.

Answers
B.

Risk management includes consideration of potential opportunities for the organization.

C.

Risk management aids with the establishment of appropriate key performance indicators.

Answers
C.

Risk management aids with the establishment of appropriate key performance indicators.

D.

Risk management increases employees' commitment and belief in strategic goals.

Answers
D.

Risk management increases employees' commitment and belief in strategic goals.

Suggested answer: B

Explanation:

Risk management is not solely about mitigating or eliminating potential hazards but also involves identifying and seizing potential opportunities that can benefit the organization. Effective risk management allows an organization to balance risk and reward, making informed decisions that align with its strategic objectives. This approach ensures a proactive stance in optimizing performance and achieving competitive advantage while managing risks.

The Institute of Internal Auditors (IIA) Standards and Practice Advisories.

COSO Enterprise Risk Management (ERM) Framework.

'Risk Management: Principles and Practices' by IIA.

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asked 03/11/2024
Igor van der Burgh
38 questions
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