Which of the following would best assist the internal audit activity in assessing whether an organization's responses to risk are aligned with its risk appetite?
Which of the following would best assist the internal audit activity in assessing whether an organization's responses to risk are aligned with its risk appetite?
Analyzing the results of successful testing of controls and monitoring procedures implemented by management would best assist the internal audit activity in assessing whether an organization's responses to risk are aligned with its risk appetite. This approach ensures that the measures taken to mitigate and manage risks are effective and in tune with the organization's defined risk tolerance.
option A is the correct
Option B focuses on aligning the internal audit's risk assessment with that of the organization. This does not directly assess the effectiveness or appropriateness of the actual risk responses. It merely ensures consistency in identifying and understanding risks.