Internal Auditors Role in Risk Management Quiz

Which of the following activities is typically performed by internal auditors during the risk identification process?

• Determining risk appetite

• Developing risk response plans

• Conducting risk assessments

• Communicating risks to stakeholders

How does the internal auditor verify the strategy implemented by the organization?

• Conduct testing and sampled various control activities which include reviewing relevant documentation, observing processes, and performing interviews.

• 1. Conduct testing and analysis on control activities which include reviewing relevant documentation, suggesting processes, and conducting interviews. 

• 1. Conduct testing and analysis on control activities which include reviewing risk documentation, suggesting risk mitigation, and conducting interviews. 

How does the internal auditor in Scene 3 review the management’s key risk?

• Interview the key stakeholders, analyze the current issue in the business industry, and analyze the business data.

• Analyzing industry trends, internal data, and conducting interviews with key stakeholders.

• Conduct a review on the business performance, interviews with the key stakeholders, and analyze the common risk faced by the business.

In Scene 2, what did Miss Liyana say about the importance of having clearly defined roles and responsibilities in managing risk?

• Clearly defined roles and responsibilities are important to ensure timely mitigation and help address risk more effectively.

• Clearly defined roles and responsibilities are important to have consistent reporting across different departments.

• Clearly defined roles and responsibilities are important because it is Beneficial for stakeholders in terms of the company’s management.

In Scene 2, the internal auditor come across the CFO, CEO & Risk Manager at

(a)  

How do internal auditors contribute to the evaluation of risks?

• By implementing risk controls.

•  By preparing risk reports.

• By reviewing risk policies.

• By engaging with risk owners and stakeholders.

How can the organization assure that the internal auditors have taken steps to evaluate risk effectively?

• Risk management team has utilized various techniques, including risk assessment, workshops, and data analysis.

• 1. Risk management team has utilized various techniques, including risk identification, interviews, and data analysis. 

• 1. Risk management team has utilized various techniques, including DU PONT analysis, interviews, and data analysis. 

How do standardized reporting templates be beneficial for the company?

• Improve the effectiveness of mitigating risk strategies of the organization.

• Improve the clarity and understanding of risk throughout the organization.

•   Improve the clarity and understanding of risk and financial performance of the organization.

What is a feedback loop in the risk management process?

• It involves collecting input from various stakeholders, such as department heads and employees, to ensure a comprehensive understanding of risks and their potential impacts.

• It involves collecting input from various employees, such as department staff to ensure a comprehensive understanding of risks and their potential impacts.

• It involves collecting input from various clients to ensure a comprehensive understanding of risks and their potential impacts on the relationship between the clients and the company.

What is the suggestion given by the Internal Auditor in Scene 4 for the issue of risk of a volatile market?

• Implementing an approach to technology monitoring and engaging in strategic partnerships or collaboration.

• Implementing a robust financial risk management strategy.

• Conducting a comprehensive supply chain analysis to identify vulnerabilities and areas for improvement.

• 1. Reviewing risk capacity and interest rate risk.