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Exam IIA-CIA-Part2 topic 5 question 281 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 281
Topic #: 5
[All IIA-CIA-Part2 Questions]

Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

  • A. Cost-benefit analysis of management not implementing a recommendation to address an observation.
  • B. Inquiry of corrective action to be completed within a certain period.
  • C. Reporting the status of every observation of every engagement in a detailed manner.
  • D. Soliciting management’s feedback after completion of the audit engagement.
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Suggested Answer: D 🗳️

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emtofid
5 months, 3 weeks ago
Selected Answer: A
A cost-benefit analysis of management not implementing a recommendation helps in assessing the residual risk by weighing the potential impact and likelihood of the risk if the recommendation is not acted upon.
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