An organization has developed mature risk management practices that are followed across all departments.
What is the MOST effective way for the audit team to leverage this risk management maturity?
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A. B. C. D.D.
The organization's mature risk management practices provide an opportunity for the audit team to leverage these practices and enhance their audit effectiveness. The most effective way for the audit team to leverage this risk management maturity depends on the audit team's objective and scope.
A. Facilitating audit risk identification and evaluation workshops: Facilitating audit risk identification and evaluation workshops is an effective way for the audit team to leverage the organization's mature risk management practices. In these workshops, the audit team can collaborate with the organization's management and stakeholders to identify, assess, and prioritize risks. This process can help the audit team gain insights into the organization's risk management practices, identify gaps, and recommend improvements.
B. Implementing risk responses on management's behalf: Implementing risk responses on management's behalf is not the most effective way for the audit team to leverage the organization's mature risk management practices. It is the management's responsibility to implement risk responses, and the audit team's role is to provide assurance that these responses are effective. However, the audit team can recommend improvements to the risk responses and monitor their implementation.
C. Providing assurances to management regarding risk: Providing assurances to management regarding risk is an effective way for the audit team to leverage the organization's mature risk management practices. The audit team can review the organization's risk management practices, assess their effectiveness, and provide recommendations to improve them. This process can help the organization's management to gain confidence that their risk management practices are effective and compliant.
D. Integrating the risk register for audit planning purposes: Integrating the risk register for audit planning purposes is an effective way for the audit team to leverage the organization's mature risk management practices. The risk register is a comprehensive record of the organization's risks, their likelihood and potential impact, and the risk management strategies in place. The audit team can use this register to plan and prioritize their audit activities, focus on high-risk areas, and ensure that their audit scope aligns with the organization's risk profile.
In summary, the most effective way for the audit team to leverage the organization's mature risk management practices depends on the audit team's objective and scope. However, facilitating audit risk identification and evaluation workshops and integrating the risk register for audit planning purposes are effective ways to leverage the organization's mature risk management practices.