Risk Assessments Are Valuable to the Internal Audit Activity's Planning

question 115

Multiple Choice

Risk assessments are valuable to the internal audit activity's planning process because they assist in:

• A) Eliminating all areas with low risk from the audit plan.
• B) Educating management on the importance of keeping the internal audit activity informed of organizational changes.
• C) Identifying the audit universe or auditable activities that need to be reviewed.
• D) Identifying risks that management and the internal auditors have overlooked.

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Definitions:

Loves to Do

Expresses the enjoyment or passion someone has for engaging in a particular activity or job.

Skunkworks

A project developed by a small and loosely structured group, often in secrecy, focused on innovative and radical solutions.

Intrapreneurship

The act of behaving like an entrepreneur while working within a large organization, focusing on innovation and creativity.

Commercial Project

A project that is undertaken by a business or a company aiming to generate profit or revenue. It can include anything from launching a new product to constructing commercial real estate.