IIA
IIA-CIA-PART2 · Question #373
IIA-CIA-PART2 Question #373: Real Exam Question with Answer & Explanation
The correct answer is A. Cost-benefit analysis of management not implementing a recommendation to address an. Residual risk is the risk that remains after management has taken steps to mitigate or control the inherent risks. The chief audit executive (CAE) performs residual risk assessment to determine the effectiveness of management's actions and whether the remaining risk is acceptable
Question
Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?
Options
- ACost-benefit analysis of management not implementing a recommendation to address an
- BInquiry of corrective action to be completed within a certain period.
- CReporting the status of every observation for every engagement in a detailed manner.
- DSoliciting management's feedback after completion of the audit engagement.
Explanation
Residual risk is the risk that remains after management has taken steps to mitigate or control the inherent risks. The chief audit executive (CAE) performs residual risk assessment to determine the effectiveness of management's actions and whether the remaining risk is acceptable.
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