Which of the Following Is the Primary Reason the Chief

question 412

Multiple Choice

Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

• A) Strategic plans reflect the organization's business objectives and overall attitude toward risk.
• B) Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.
• C) Strategic plans are likely to show areas of weak financial controls.
• D) The strategic plan is a relatively stable document on which to base audit planning.

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Definitions:

Defensive Strategy

A business approach aimed at protecting the company's current market position and assets from potential threats or competition.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public—by practicing ethical and sustainable actions.

Legally Required

Refers to actions or processes that are mandated by law or regulation, often ensuring compliance or safety standards are met.

Obstructionist Strategy

A corporate approach where a company takes actions to block or delay certain policies or initiatives, often for strategic or competitive reasons.