An Organization Does Not Have a Formal Risk Management Function

question 214

Multiple Choice

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity (IAA) may provide risk management consulting? 1. There is a clear strategy and timeline to migrate risk management responsibility back to management. 2. The IAA has the final approval on any risk management decisions. 3. The IAA does not give objective assurance on any part of the risk management framework for which it is responsible. 4. The nature of services provided to the organization is documented in the internal audit charter.

• A) 1, 2, and 3 only
• B) 1, 2, and 4 only
• C) 1, 3, and 4 only
• D) 2, 3, and 4 only

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Definitions:

Ratings

Evaluations or assessments of the quality, performance, or popularity of products, services, or content, often influencing consumer choices and perceptions.

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs, emphasizing flexibility for both employers and workers.

Tax-free Purchases

Transactions exempt from sales tax, often related to purchases made in duty-free shops or certain goods in specific regions or situations.

High Tech

Industries and companies that are involved in developing and producing advanced technology products and services, especially in fields like electronics, software, and biotechnology.