Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 149

Which of the following factors is not likely to affect the level of inherent risk associated with an application system?

Answer options

• A. The system is strategic.
• B. Controls over the system appear reliable.
• C. The system is not a critical operating system.
• D. The system uses complex technology.

Correct answer: B

Explanation

The correct answer is B because the reliability of controls pertains to the mitigated risk after controls are implemented, rather than the inherent risk of the system itself. Inherent risk is influenced by factors like the system's strategic importance, criticality, and complexity, which are more directly related to risk levels.