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Exam IIA-CIA-Part2 topic 5 question 318 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 318
Topic #: 5
[All IIA-CIA-Part2 Questions]

Besides a chief audit executive's professional experience, what determines the frequency and approach to assessing residual risk?

  • A. The frequency of executing the internal audit engagements.
  • B. The frequency of changes in the organization's environment.
  • C. The expectations set by the board and senior management.
  • D. The expectations set by operating management and senior management.
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Suggested Answer: B 🗳️

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Kozy
1 week, 1 day ago
Selected Answer: C
The chief audit executive (CAE) is responsible for ensuring that residual risk is assessed appropriately as part of the risk-based audit planning and execution. While professional judgment is important, the frequency and approach to assessing residual risk are primarily influenced by: The expectations of the board and senior management, who are ultimately accountable for governance, risk management, and oversight. They guide how often and how deeply the CAE should evaluate residual risks, particularly in light of strategic changes, emerging risks, or organizational priorities. B Wong: Changes in the environment: These trigger risk assessments but do not determine the frequency or approach—those are set by expectations from leadership.
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