An internal auditor developed a list of internal and external risk considerations across the organization's processes, developed a scale to assess each risk and allocated the relative importance of…

The correct answer is C. Risk-factor approach. The risk-factor approach involves developing a list of internal and external risk considerations, creating a scale to assess each risk, and allocating the relative importance of each risk. This approach allows the auditor to systematically evaluate risks based on predefined…

Planning the Engagement

Question

An internal auditor developed a list of internal and external risk considerations across the organization's processes, developed a scale to assess each risk and allocated the relative importance of each risk. When of the following approaches did the auditor take?

Options

ATop-down approach
BProcess-Metrix approach
CRisk-factor approach
DBottom up approach

How the community answered

(60 responses)

B
2% (1)
C
95% (57)
D
3% (2)

Explanation

The risk-factor approach involves developing a list of internal and external risk considerations, creating a scale to assess each risk, and allocating the relative importance of each risk. This approach allows the auditor to systematically evaluate risks based on predefined criteria and weightings, ensuring a comprehensive risk assessment across the organization's processes.

Topics

#risk-factor approach#risk assessment#audit planning#risk prioritization

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