Which Characteristic of Risk Assessment Makes It a Useful Tool

question 329

Multiple Choice

Which characteristic of risk assessment makes it a useful tool for audit planning?

• A) It provides a list of auditable activities in the organization.
• B) It ranks the severity of potentially adverse effects on the organization.
• C) It provides a process for identifying and analyzing potentially adverse effects.
• D) It evaluates the probability that an event or action may adversely affect the organization.

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Definitions:

Properly Calibrated

Refers to the accurate adjustment of instruments, equipment, or devices to ensure their measurements meet the required standards.

Electronic Control

Systems or devices that use electrical signals to regulate or manage other electronic systems.

Significant Level

This term likely refers to significance level; thus it is the threshold at which the p-value of test results must fall below to reject the null hypothesis, indicating statistical significance.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.