Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 40

Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration:

Answer options

• A. The type and nature of the activities to be examined.
• B. Whether employees in key positions of trust are bonded.
• C. The history of losses suffered by the company.
• D. The results of prior risk assessments.

Correct answer: A

Explanation

The correct choice, A, emphasizes the importance of understanding the specific activities under review, which directly influences risk assessment. Options B, C, and D, while relevant to overall risk management, do not specifically address the immediate concerns related to the nature of the activities being audited.