An Organization Has Adopted an Enterprise-Wide Risk Management Process and Has

question 209

Multiple Choice

An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

• A) The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.
• B) The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.
• C) The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.
• D) Senior management is accountable to the board for monitoring the system of internal controls.

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Definitions:

Forgetting

The inability to retrieve information from memory over time, often due to decay or interference.

Nonsense Syllables

A set of strings of letters that do not follow the phonetic rules of any language and have no meaning, often used in memory and learning experiments.

Encoding Failure

A situation in which information does not enter the long-term memory from the short-term or working memory, often leading to forgetting.

Source Amnesia

The inability to recall when, where, or how previously learned information has been acquired, while retaining the factual knowledge.