A small business unit is implementing a control self-assessment (CSA) program and leveraging the internal audit function to test its internal controls annually. Which of the following is the MOST significant benefit of this approach?
A.
Line management is more motivated to avoid control exceptions.
B.
Business owners can focus more on their core roles.
The most significant benefit of implementing a control self-assessment program and leveraging the internal audit function to test internal controls annually is that risks are detected earlier. CSA programs involve individuals within the business unit assessing and testing their own controls, which can lead to the identification of risks and control weaknesses at an early stage. The involvement of internal audit provides an independent and objective validation of the self-assessment results.
Early detection of risks allows for timely corrective actions, enhancing the organization's ability to prevent or mitigate potential issues before they escalate. This contributes significantly to the effectiveness of the internal control environment.
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FAGFUR
4 months ago