A small business unit is implementing a control self-assessment (CSA) program and leveraging the internal audit function to test its internal controls annually. Which of the following is the MOST…

While a CSA program can increase management motivation, early risk detection is a more direct and significant benefit of combining self-assessment with internal audit validation.

Business owners are more involved in a CSA, not less, as they participate in evaluating controls, making this statement incorrect.

A Control Self-Assessment (CSA) program actively involves management and staff in evaluating their own controls, making them more aware of risks. When combined with internal audit testing, this proactive engagement and independent verification lead to quicker identification of control weaknesses and emerging risks, allowing for earlier mitigation.

While CSA can improve control effectiveness, the initial setup and ongoing involvement might not always immediately reduce compliance costs, and early risk detection is a more fundamental benefit.