BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cross-section of management is involved in assessing the impact and likelihood of each risk.
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Risk owners are assigned responsibility for each key risk.
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A member of senior management presents the results of the risk assessment to the board and communicates that it represents the organization’s risk profile.
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The internal audit function obtains assistance from an outside consultant in the conduct of the formal risk assessment session
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Detailed explanation-1: -Senior management should inform the board of decisions about all significant issues raised by internal auditing. 5. When the CAE believes that senior management has accepted a level of risk that the organization considers unacceptable, the CAE must discuss the matter with senior management as stated in Standard 2600.
Detailed explanation-2: -Which of the following is the best reason for the CAE to consider the organization’s strategic plan in developing the annual audit plan? The CAE is asked to lead the enterprise risk assessment as part of an organization’s implementation of ERM.
Detailed explanation-3: -When senior management accepts a level of residual risk that the CAE believes is unacceptable to the organization, the CAE should: a. Report the unacceptable risk level immediately to the chair of the audit committee and the independent outside audit firm partner.
Detailed explanation-4: -The objective of enterprise risk management is to develop a holistic, portfolio view of the most significant risks to the achievement of the entity’s most important objectives.