IIA-CIA-PART2 · Question #443
Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the…
The correct answer is B. Assess the level of financial risks that may affect the organization's stability. When senior management is challenging regulatory fines that could adversely affect the organization's ability to continue business, the chief audit executive (CAE) should assess the level of financial risks that may affect the organization's stability. This approach allows the…
Question
Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?
Options
- AAssume responsibility for quantifying and minimizing the residual risks to the organization.
- BAssess the level of financial risks that may affect the organization's stability.
- CInform the regulatory agency about senior management's action and seek guidance.
- DProceed with a consulting engagement to benchmark similar organizations' business practices in
How the community answered
(37 responses)- A24% (9)
- B59% (22)
- C11% (4)
- D5% (2)
Explanation
When senior management is challenging regulatory fines that could adversely affect the organization's ability to continue business, the chief audit executive (CAE) should assess the level of financial risks that may affect the organization's stability. This approach allows the CAE to evaluate the potential impact of the fines on the organization's financial health and ensure that appropriate risk management strategies are in place.
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