Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 148

The chief audit executive (CAE) should determine whether the internal audit activity has confirmed the status of all of management's corrective actions. Doing so would help the CAE assess which of the following?

Answer options

• A. Disclosure risk.
• B. Residual risk.
• C. Compliance risk.
• D. Inherent risk.

Correct answer: B

Explanation

The correct answer is B, Residual risk, because confirming the status of management's corrective actions helps the CAE understand the level of risk that remains after these actions have been implemented. The other options relate to different types of risk that do not specifically address the assessment of remaining risk post-corrective measures.