The Board Has Asked the Internal Audit Activity (IAA) to Be

question 468

Multiple Choice

The board has asked the internal audit activity (IAA) to be involved in the organization's enterprise risk management process. Which of the following activities is appropriate for IAA to perform without safeguards?

• A) Coach management in responding to risks.
• B) Develop risk management strategies for board approval.
• C) Facilitate identification and evaluation of risks.
• D) Evaluate risk management processes.

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Definitions:

Interest Rate Movements

Fluctuations in the interest rate over time which can affect borrowing costs and investment returns.

Stock and Bond Markets

Financial markets where shares of publicly held companies are issued and traded, and where debt securities are bought and sold.

Rates of Return

A measure of the profit or loss of an investment over a specified period, usually expressed as a percentage of the initial investment.

Equity Returns

The profit or loss generated on an investment in equity, represented as a percentage of the investment's initial cost.