According to IIA guidance which of the following statements is true regarding heat maps?

The correct answer is C. A heat map recognizes that the priority of impact and likelihood can vary. According to IIA guidance, heat maps are tools used in risk assessment that visually represent the severity of risks by plotting them on a matrix based on their likelihood and impact. Heat maps are flexible and can be adjusted to prioritize either likelihood or impact depending…

Conducting Internal Audit Engagements

Question

Options

AA heat map sets likelihood to have higher priority than impact.
BA heat map sets impact to have higher priority than likelihood.
CA heat map recognizes that the priority of impact and likelihood can vary.
DA heat map recognizes impact and likelihood as equally important

How the community answered

(29 responses)

B
3% (1)
C
93% (27)
D
3% (1)

Explanation

According to IIA guidance, heat maps are tools used in risk assessment that visually represent the severity of risks by plotting them on a matrix based on their likelihood and impact. Heat maps are flexible and can be adjusted to prioritize either likelihood or impact depending on the specific context and the organization's risk appetite and tolerance. This recognition that the priority of impact and likelihood can vary allows for a more nuanced and tailored risk assessment approach.

Topics

#heat maps#risk assessment#likelihood vs impact#risk prioritization

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