Exam CISA topic 1 question 75 discussion

It must be aligned with business strategy.

Answer: B

My answer is A

The primary basis for setting audit objectives is the consideration of risk. This includes the identification and assessment of risks that may prevent the organization from achieving its goals.

Audit risk is a combination of the inherent risk (susceptibility of the financial statements to material misstatement) and control risk (risk that internal controls won't prevent or detect a material misstatement). By understanding these risks, auditors can tailor their objectives to focus on areas with a higher likelihood of encountering problems.

Audit is Risk Based so B for me. Isn't option D already covered in Inherent Risk?

Audit is risk-based approach. Should be B

I would go with B here. Risk is what drives the objectives.

To add a little more, audit objectives should be based on inherent risk assessments, knowledge of business and industry, prior year's audit reports, recent financial information, regulatory statues. I think B is a better suited answer in the perspective of the CISA exam than D or A but I might be wrong.

Audit risk refers to Inherent Risk x Detection Risk x Control Risk; This is not the primary basis in which audit objectives are based on. I think B is more suitable than D or A.

Its a risk based audit, accordingly business risks derives the audit scope and objectives.

D covers B

Audit objectives are established from risk assessment hence consideration of risks

Audit objective is to be based on business risks and not business strategy. B is the answer

B is the answer

business strategy should be the starting point of any audit plan

the primary basis should be business strategy. From business strategy then we can identify risk. The answer should be D