Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 184

Besides a chief audit executive's professional experience, what determines the frequency and approach to assessing residual risk?

Answer options

• A. The frequency of executing the internal audit engagements.
• B. The frequency of changes in the organization's environment.
• C. The expectations set by the board and senior management.
• D. The expectations set by operating management and senior management.

Correct answer: B

Explanation

The correct answer, B, is accurate because changes in the organization's environment can create new risks or alter existing ones, necessitating a reassessment of residual risk. Options A, C, and D focus on internal processes and expectations rather than external factors impacting risk assessment frequency and methodology.