Exam IIA-CIA-Part1 topic 6 question 409 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 409
Topic #: 6

An internal auditor is evaluating the effectiveness of controls in the organization's order-to-cash process. The auditor agrees with the process owner that the appropriate response to address the risk of bad debt is to mitigate the risk. Which of the following is the appropriate next step for the auditor?

A. Document the agreed action plan to mitigate the risk and follow up after an established time period.
B. Test the existing controls to determine whether they effectively mitigate the risk.
C. Identify the impact and likelihood of the risk to determine its significance.
D. Identify the actual controls to be applied to mitigate the risk.

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Suggested Answer: D 🗳️

by f30b972 at Aug. 16, 2024, 10:14 p.m.

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Kozy

1 week ago

Selected Answer: B

In this scenario: The risk of bad debt has been identified. The agreed response is to mitigate the risk, which means implementing or relying on controls to reduce its likelihood or impact. The next logical step for the auditor is to: ✅ Test the existing controls to evaluate whether they are designed and operating effectively in mitigating the risk. This aligns with standard audit procedures: after identifying risk and mitigation strategy, the auditor tests controls to confirm they adequately address the risk.

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Elvoo

10 months, 2 weeks ago

Selected Answer: B

Shouldn't the right answer be B?

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83b5204

9 months ago

I guess clear identification of risks must be preceded. So it is D

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