Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 107

Internal controls belong to which risk response category?

Answer options

• A. Reduction.
• B. Avoidance.
• C. Sharing.
• D. Acceptance.

Correct answer: A

Explanation

Internal controls are designed to minimize risks, which is why they are categorized under Reduction. The other options—Avoidance, Sharing, and Acceptance—represent different strategies for dealing with risk, but they do not specifically pertain to the implementation of controls to mitigate risks.