Which of the Following Is an Appropriate Role for the Internal

question 92

Multiple Choice

Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?

• A) Identify and manage risks in line with the organization's risk appetite.
• B) Ensure that a proper and effective risk management process exists.
• C) Attain an adequate understanding of the organization's key risk mitigation strategies.
• D) Identify and ensure that appropriate controls exist to mitigate risks.

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Definitions:

State Sales Tax

A tax imposed by a state on the sale of goods and services, typically calculated as a percentage of the sales price.

Revenue Report

A financial document that outlines the income generated by a company from its normal business operations.

General Journal Entry

A record in the general journal that includes the date, accounts and amounts to be debited and credited, and a brief description of the transaction.

Related Liabilities

Related liabilities are obligations that are directly associated with the primary operations or financial activities of a business.