Besides a chief audit executive's professional experience what determines the frequency and approach to assessing residual risk?

The correct answer is C. The expectations set by the board and senior management. The frequency and approach to assessing residual risk are primarily influenced by the expectations set by the board and senior management. These expectations shape the internal audit function's priorities, including how often residual risk should be assessed and the methods…

Managing the Internal Audit Activity

Question

Options

AThe frequency of executing the internal audit engagements
BThe frequency of changes in the organization environment
CThe expectations set by the board and senior management
DThe expectations set by operating management and senior management

How the community answered

(39 responses)

A
3% (1)
B
3% (1)
C
90% (35)
D
5% (2)

Explanation

The frequency and approach to assessing residual risk are primarily influenced by the expectations set by the board and senior management. These expectations shape the internal audit function's priorities, including how often residual risk should be assessed and the methods used to evaluate it. This ensures that the internal audit activities are aligned with the strategic objectives and risk appetite of the organization, as defined by its senior leadership.

Topics

#residual risk#risk assessment frequency#board expectations#CAE responsibilities

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