Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 204

According to IIA guidance, which of the following is most important for the internal audit activity to evaluate regarding management’s remediation plans to address audit findings?

Answer options

• A. Whether the adequacy of remediation plans is sufficient to address the risk.
• B. Whether the timeliness of remediation plans is reasonable considering business unit priorities.
• C. Whether the costs associated with remediation plans outweigh the risk impact.
• D. Whether the parties responsible for remediation have adequate competencies to execute the actions.

Correct answer: C

Explanation

The correct answer is C because it highlights the importance of evaluating whether the financial implications of remediation plans are justified by the potential risks addressed. Options A, B, and D focus on different aspects of remediation that, while important, do not directly assess the cost-risk balance as effectively as option C does.