If Management Has Not Established a Risk Management Process, the Internal

question 247

Multiple Choice

If management has not established a risk management process, the internal audit activity could.

• A) Take a proactive role that supplements traditional assurance activities.
• B) Identify and mitigate risks to the organization.
• C) Assume responsibility for the management of identified risks.
• D) Assume primary responsibility for determining if adequate and effective processes are in place.

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Definitions:

Price Floor

A minimum price set by the government for certain goods and services, below which they cannot be sold, aimed at protecting producers.

Government Purchases

Expenditures made by the government for goods and services that affect the economy, including investments and spending on infrastructure, healthcare, and education.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to market price.

Price Floor

A government or regulatory-imposed minimum price for a particular good or service, above the equilibrium price.