IIA-CIA-PART2 · Question #20
The board has asked the internal audit activity (IAA) to be involved in the organization's enterprise risk management process. Which of the following activities is appropriate for IAA to perform…
The correct answer is D. Evaluate risk management processes. According to IIA guidance, the internal audit activity (IAA) can evaluate risk management processes without the need for safeguards. This activity aligns with the internal auditors' role in providing assurance on the effectiveness of the risk management process. Coaching…
Question
The board has asked the internal audit activity (IAA) to be involved in the organization's enterprise risk management process. Which of the following activities is appropriate for IAA to perform without safeguards?
Options
- ACoach management in responding to risks.
- BDevelop risk management strategies for board approval.
- CFacilitate identification and evaluation of risks.
- DEvaluate risk management processes.
How the community answered
(42 responses)- A14% (6)
- B7% (3)
- C5% (2)
- D74% (31)
Explanation
According to IIA guidance, the internal audit activity (IAA) can evaluate risk management processes without the need for safeguards. This activity aligns with the internal auditors' role in providing assurance on the effectiveness of the risk management process. Coaching management (Option A) and developing risk management strategies (Option B) involve direct participation in management functions, which could impair objectivity and require safeguards. Facilitating the identification and evaluation of risks (Option C) might also involve a degree of management participation that could compromise independence without proper safeguards.
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