Which of the following tasks is appropriate for the CAE to undertake?

A multinational organization has asked the internal audit activity to assist in setting up the organization’s risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant.

Which of the following tasks is appropriate for the CAE to undertake?
A . Coordinate and facilitate risk workshops for management to attend.
B . Establish the degree of risk appetite for management to accept.
C . Set risk indicators and mitigation plans for management to implement
D . Determine the number of significant risks for management to report to the board.

View Answer

Answer: A

Explanation:

The chief audit executive (CAE) taking on a consultative role can appropriately coordinate and facilitate risk workshops for management. This task aligns with the advisory function of internal audit, where they support and facilitate the risk management process without directly setting the risk appetite or determining risk mitigation strategies, thereby maintaining their advisory and facilitative role without assuming management responsibilities.

Reference: International Standards for the Professional Practice of Internal Auditing; guidance on internal audit’s role in consulting.