Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 166

Senior management is eager to assess the organization's risks with regard to electricity sales processes, but the senior management team does not know where to start. How can the internal audit activity assist?

Answer options

• A. Outsource the identification of best practices for risk management to an external third party.
• B. Perform an audit engagement to identify risk management practices deployed in electricity sales processes.
• C. Recommend reporting the lack of risk management to government authorities and request guidance.
• D. Facilitate a self-assessment workshop with the employees responsible for process execution.

Correct answer: B

Explanation

The correct answer is B because performing an audit engagement allows for a thorough examination of the existing risk management practices specific to electricity sales processes. The other options either suggest outsourcing the task, which does not leverage internal resources, or reporting a lack of management, which does not address identifying existing practices. Option D, while valuable, focuses more on self-assessment rather than the formal audit process needed for comprehensive evaluation.