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IIA-CIA-PART2 · Question #99

To effectively communicate the acceptance of risk in an organization a chief audit executive must first consider which of the following?

The correct answer is A. The organization's view on risk tolerance. To effectively communicate the acceptance of risk in an organization, a chief audit executive (CAE) must first consider the organization's view on risk tolerance. Understanding the organization's risk tolerance is crucial because it defines the level of risk the organization is…

Managing the Internal Audit Activity

Question

To effectively communicate the acceptance of risk in an organization a chief audit executive must first consider which of the following?

Options

  • AThe organization's view on risk tolerance
  • BThe organization's principal risk events.
  • CThe organization's risk response strategies
  • DThe organization's major control activities

How the community answered

(20 responses)
  • A
    90% (18)
  • B
    5% (1)
  • D
    5% (1)

Explanation

To effectively communicate the acceptance of risk in an organization, a chief audit executive (CAE) must first consider the organization's view on risk tolerance. Understanding the organization's risk tolerance is crucial because it defines the level of risk the organization is willing to accept in pursuit of its objectives. This perspective guides how risks are communicated and managed across the organization.

Topics

#risk tolerance#risk communication#risk acceptance#CAE communication

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