When beginning an engagement to assess the effectiveness of the organization’s newly revamped risk management processes, which of the following should internal auditors review first?
A.
Key risk disclosures in the annual report.
B.
Existing risk assessment and identification processes.
When assessing the effectiveness of risk management processes, internal auditors must start by understanding the organization's objectives, strategy, and business plans, because:
Risk management exists to help the organization achieve its objectives.
Without understanding strategic goals, auditors cannot properly assess whether risks are identified, assessed, and managed in alignment with those goals.
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Kozy
4 weeks agof30b972
11 months, 3 weeks ago