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:

Three-Mountain Task

A cognitive psychology test that examines a child’s ability to understand and evaluate different perspectives and spatial awareness.

Causal Reasoning

The cognitive process of identifying relationships between causes and effects.

Cognitive Competence

The ability to effectively engage in mental processes such as thinking, reasoning, and problem solving.

Verbally Presented

This term refers to information or data that is delivered or expressed through spoken words, as opposed to written form.