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Question 256 - IIA-CIA-Part2 discussion

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A chief audit executive (CAE) determined that management chose to accept a high-level risk that may be unacceptable lo the organization. Which is the best course of action for the CAE to Follow?

A.
Include using in a subsequent audit to determine if the risks are still present
Answers
A.
Include using in a subsequent audit to determine if the risks are still present
B.
Discuss the matter with senior management and it not reserved with the board
Answers
B.
Discuss the matter with senior management and it not reserved with the board
C.
Require that management implement controls to mitigate lie risks
Answers
C.
Require that management implement controls to mitigate lie risks
D.
Report the risks to the process owners so that they can modify their process
Answers
D.
Report the risks to the process owners so that they can modify their process
Suggested answer: B

Explanation:

If the chief audit executive (CAE) determines that management has chosen to accept a high-level risk that may be unacceptable to the organization, the CAE should first discuss the matter with senior management. If senior management does not address the concern, the CAE should escalate the issue to the board. This escalation process ensures that the highest levels of governance are aware of significant risks and can take appropriate action if necessary. It also aligns with the CAE's responsibility to ensure that risks are properly managed within the organization.

Reference:

The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing, Standard 2600 - Communicating the Acceptance of Risks

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asked 18/09/2024
Diego Beltran
39 questions
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