The Purpose of the Internal Audit's Evaluation of the Effectiveness

question 54

Multiple Choice

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

• A) Management has planned and designed the process to provide reasonable assurance of achieving objectives and goals.
• B) Management directs processes to provide reasonable assurance of achieving objectives and goals.
• C) The organization's objectives and goals will be achieved efficiently and economically.
• D) The organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.

---

Definitions:

Productive Efficiency

A situation where the economy or a production system can no longer produce additional amounts of a good without lowering the production level of another product.

Severe Recession

An extended period of significant decline in economic activity across the economy, lasting more than a few months, characterized by high unemployment, low consumer spending, and decreased industrial production.

Depression

An extended period of significant decline in economic activity across a country or the global economy, marked by high unemployment rates, low consumer spending, and decreased industrial output.

Unemployment Rate

The portion of the workforce currently unemployed but actively searching for work opportunities.