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Question 328 - IIA-CIA-Part2 discussion

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The board of directors expressed concerns about potential external risks that could impact the organization s ability to meet its annual objectives and goals The board requested consulting services from the internal audit activity to gain insight regarding the external risks Which of the following engagement objectives would be appropriate to fulfill this request?

A.
Assess the organization's ability to minimize potential external risks
Answers
A.
Assess the organization's ability to minimize potential external risks
B.
Assess the organization's process of vetting vendors that provide necessary services to the organization
Answers
B.
Assess the organization's process of vetting vendors that provide necessary services to the organization
C.
Assess the organization's risk impacts from the markets in which it operates
Answers
C.
Assess the organization's risk impacts from the markets in which it operates
D.
Assess the organization's controls implemented that would help minimize risks
Answers
D.
Assess the organization's controls implemented that would help minimize risks
Suggested answer: A

Explanation:

When the board requests consulting services to gain insight regarding external risks, the appropriate engagement objective is to assess the organization's ability to minimize these risks. This involves evaluating the organization's risk management framework, including identifying external risks, assessing their potential impact, and reviewing the effectiveness of the strategies and controls in place to mitigate these risks. By doing so, internal auditors provide valuable insights into how well the organization is prepared to handle external threats and ensure the achievement of its annual objectives.

Institute of Internal Auditors (IIA) Standards: Performance Standards 2110: Governance

COSO Enterprise Risk Management (ERM) Framework: Risk Assessment and Risk Response Components

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asked 18/09/2024
chalapathy naidu
39 questions
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