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IIA-CIA-PART2 · Question #379

The internal audit activity plans to assess the effectiveness of management's self-assessment activities regarding the risk management process. Which of the following procedures would be most…

The correct answer is D. Observe and test control and monitoring procedures and related reporting. Assessing the effectiveness of management's self-assessment activities in the context of risk management requires a thorough examination of the processes that management uses to monitor and control risks. The most effective way to evaluate these activities is to observe and…

Performing the Engagement

Question

The internal audit activity plans to assess the effectiveness of management's self-assessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?

Options

  • AReview corporate policies and board minutes for examples of risk discussions.
  • BConduct interviews with line and senior management on current practices.
  • CResearch and review relevant industry information concerning key risks.
  • DObserve and test control and monitoring procedures and related reporting.

How the community answered

(36 responses)
  • A
    11% (4)
  • B
    3% (1)
  • C
    6% (2)
  • D
    81% (29)

Explanation

Assessing the effectiveness of management's self-assessment activities in the context of risk management requires a thorough examination of the processes that management uses to monitor and control risks. The most effective way to evaluate these activities is to observe and test the control and monitoring procedures in place.

Topics

#control self-assessment#risk management effectiveness#monitoring procedures#audit procedures

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