When Assessing the Adequacy of a Risk Mitigation Strategy, an Internal

question 173

Multiple Choice

When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following? 1. Management's tolerance for specific risks. 2. The cost versus benefit of implementing a control. 3. Whether a control can mitigate multiple risks. 4. The ability to test the effectiveness of the control.

• A) 1, 2, and 3
• B) 1, 2, and 4
• C) 1, 3, and 4
• D) 2, 3, and 4

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Definitions:

Error Variance

Pertains to the variation within experimental data that cannot be attributed to the variables being studied, essentially representing noise in the data.

Quasi-Experimental Designs

Research designs that seek to establish causal relationships between variables but lack the full control or random assignment typical of true experiments.

Selection Criteria

The specific guidelines or requirements used to determine which individuals or cases are included or excluded from a study or analysis.

Initial Groupings

The preliminary categorization or division of subjects, items, or variables based on specific criteria at the start of a study or analysis.