Exam IIA-CIA-Part2 topic 5 question 398 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 398
Topic #: 5

The project manager responsible for overseeing a controversial project decides to accept the risks associated with the project launch. These risks might have a significant impact on the organization meeting its environmental sustainability goals. Which of the following is the most appropriate next step for the chief audit executive to take in response to the decision?

A. Educate employees working on the project launch about the risks.
B. Notify the board about the significant risks the organization might face.
C. Communicate the risks to senior management.
D. Instruct the project manager to stop the controversial project development.

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Suggested Answer: B 🗳️

by Kozy at July 25, 2025, 12:19 p.m.

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Kozy

1 week ago

Selected Answer: C

A project manager made a risk acceptance decision. There is no explicit mention that senior management has been informed, nor that the CAE has discussed it with them yet. The CAE is now considering the "next step". ✅ Therefore, the best answer is: C. Communicate the risks to senior management. Because: IIA Standard 2600 requires that if the CAE believes management has accepted a level of risk that may be unacceptable to the organization, the CAE must first discuss it with senior management. Only if the issue is not resolved, the CAE should escalate to the board.

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