IIA Exam IIA-CIA-Part3-3P Topic 5 Question 35 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 35
Topic #: 5

Which of the following statements is correct regarding risk analysis?

AThe extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

BThe highest risk assessment should always be assigned to the area with the largest potential loss.

CThe highest risk assessment should always be assigned to the area with the highest probability of
occurrence.

DRisk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Show Suggested Answer

Suggested Answer: B

by Sheron at Dec 21, 2023, 02:27 AM

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Chana

10 days ago

But A makes sense because management judgments play a key role in risk analysis.

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Shaquana

11 days ago

I disagree, I believe it's C.

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Chana

12 days ago

I think the correct statement is A.

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Mari

13 days ago

I disagree, I believe C is the right answer. The highest risk should be assigned to the area with the highest probability of occurrence, not just the largest potential loss.

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Rory

14 days ago

I think A is the correct answer. The auditor should consider management's judgments and expertise in assessing risk, not just the potential loss or probability.

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