An organization is experiencing a significant risk that threatens its financial well-being Senior management requested that the chief audit executive (CAE) meet with them to discuss the risk. Which…

Question

Options

• AInform senior management of the appropriate actions they should take to control the risk
• BRecommend that the internal audit activity provide consulting services to help minimize the risk
• CAssume the responsibility of resolving the significant risk that will affect the organization
• DDetermine whether senior management accepted risk that may be deemed unacceptable for the

• A
  1% (1)
• B
  4% (3)
• C
  10% (7)
• D
  84% (56)

Explanation

The chief audit executive (CAE) has the responsibility to provide assurance and insight on risk management processes. In a meeting with senior management to discuss significant risks, the CAE should focus on evaluating whether the risks accepted by senior management align with the organization's risk appetite and are within acceptable levels. The CAE should ensure that the risk management practices are adequate and that senior management is aware of any risks that might exceed the organization's tolerance levels. This approach is aligned with the role of internal audit in providing independent and objective evaluations.

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