Which of the following best describes the internal audit activity’s contribution to the implementation of the risk management framework?

Which of the following best describes the internal audit activity’s contribution to the implementation of the risk management framework?
A . Internal audit identifies key risk areas during assurance reviews and provides audit findings.
B . Internal audit assists with the prioritization of identified risks.
C . Internal audit participates in setting the risk appetite.
D . Internal audit takes part in the design of risk mitigation measures.

View Answer

Answer: B

Explanation:

The internal audit activity contributes to the implementation of the risk management framework by assisting with the prioritization of identified risks. This is done through the provision of assurance and consulting services that help the organization to understand which risks are most significant and how they should be addressed based on their impact and likelihood.

Reference: IIA Performance Standards on risk management; literature on internal audit’s role in risk assessment and management.