Which of the following MUST be completed as part of the annual audit planning process?
Which of the following MUST be completed as part of the annual audit planning process?
Risk assessment is a fundamental part of the annual audit planning process. It involves identifying and evaluating risks to the organization's assets and operations, which helps in prioritizing audit activities based on the level of risk. This ensures that resources are effectively allocated to areas of greatest concern, developing a risk-based audit plan that addresses the most significant risks to the organization. Other options like Fieldwork, Risk control matrix, and Business impact analysis (BIA) are important in their respective contexts but are not mandatory steps in the annual audit planning process.
Answer should be C
The correct answer is C. BIA is a must in BCP Planning, not Audit Planning. Risk assessment is a must in Audit Planning.
C. Risk Assessment is correct from my point of view. I understand Business impact analysis as part of Risk Assessment when needed. Also as of now the AI Chatbots GhatGPT, Google's Gemini as well as Microsoft's Copilot indicate C. as the correct answer.
Risk assessment
Option C is it...
Option C could be correct. Risk Assessment
Risk assessment step involves identifying and evaluating risks to the organization's assets and operations. It helps auditors prioritize audit activities based on the level of risk, ensuring that resources are allocated to areas of greatest concern. This is fundamental to developing a risk-based audit plan that addresses the most significant risks to the organization. D. Business Impact Analysis (BIA): This is part of business continuity planning and not specifically a requirement for annual audit planning. It assesses the impact of disruptions on business operations, which is different from the risk assessment used for audit planning.
The answer is C. Risk assessment.