Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 186

The project manager responsible for overseeing a controversial project decides to accept the risks associated with the project launch. These risks might have a significant impact on the organization meeting its environmental sustainability goals. Which of the following is the most appropriate next step for the chief audit executive to take in response to the decision?

Answer options

• A. Educate employees working on the project launch about the risks.
• B. Notify the board about the significant risks the organization might face.
• C. Communicate the risks to senior management.
• D. Instruct the project manager to stop the controversial project development.

Correct answer: B

Explanation

The correct answer is B, as notifying the board about significant risks is crucial for governance and oversight. Educating employees (A) and communicating with senior management (C) are important, but they do not address the board's responsibility to understand and manage organizational risk. Instructing the project manager to stop the project (D) may not be appropriate without a comprehensive assessment of the risks and potential benefits.