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Exam IIA-CIA-Part2 All Questions

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Exam IIA-CIA-Part2 topic 5 question 359 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 359
Topic #: 5
[All IIA-CIA-Part2 Questions]

Where should internal auditors focus their attention when identifying and assessing key risks during the planning stage of an assurance engagement?

  • A. Sampling risk
  • B. Audit risk
  • C. Residual risk
  • D. Inherent risk
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Suggested Answer: D 🗳️

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Kozy
1 week, 1 day ago
Selected Answer: C
During the planning stage of an assurance engagement, internal auditors focus on identifying and assessing key risks that may impact the achievement of objectives. The IIA emphasizes that auditors should pay special attention to residual risk, which is: The risk that remains after management has implemented controls. Residual risk is what the internal audit function is primarily concerned with, because it reflects the actual exposure the organization faces despite existing controls. This helps auditors determine where to allocate audit resources and what areas require testing or further evaluation.
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