The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that
A)management has planned and designed operations to provide reasonable assurance of achieving objectives and goals.
B)management's policies and procedures will achieve objectives and goals.
C)the organization's objectives and goals are established within risk limits established by the internal audit organization.
D)the organization's objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.

Question

Quizplus · Accepted Answer

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that management has planned and designed operations to provide reasonable assurance of achieving objectives and goals. This means that the organization has established risk management processes that are designed to help achieve its objectives and goals, and that these processes are effective in providing reasonable assurance of success. Option A best reflects this aim. Option B focuses solely on management's policies and procedures, which may not necessarily guarantee achievement of objectives and goals. Option C is incorrect because it refers to the establishment of objectives and goals, which is not the focus of the internal audit's evaluation of risk management processes. Option D is also incorrect because it emphasizes achieving objectives and goals with minimal use of resources, which may not be the primary objective of the evaluation.

The Purpose of the Internal Audit's Evaluation of the Effectiveness