Certified Internal Auditor Risk Assessment & Management 2

Question 1

Which risk assessment technique uses a structured group process to elicit expert opinions anonymously across multiple rounds?

Accepted Answer

Delphi technique

Answer

The Delphi technique gathers anonymous expert input through iterative questionnaire rounds until consensus is reached.

Question 2

Residual risk is best defined as the risk that remains after:

Accepted Answer

Management implements controls

Answer

Residual risk is the exposure that remains after management has applied controls to address inherent risk.

Question 3

An organization's risk appetite differs from its risk tolerance in that risk appetite represents:

Accepted Answer

The broad level of risk an entity is willing to accept in pursuit of objectives

Answer

Risk appetite is the overall amount of risk an entity is willing to accept, while risk tolerance is the acceptable deviation around specific objectives.

Question 4

When using a heat map to present risk assessment results, the axes typically represent:

Accepted Answer

Likelihood and impact

Answer

Heat maps plot risks on a two-dimensional grid of likelihood (probability) versus impact (consequence) to prioritize audit attention.

Question 5

Which of the following is an example of a risk response strategy known as 'risk sharing'?

Accepted Answer

Purchasing insurance for property damage

Answer

Insurance transfers a portion of financial risk to a third party, which is the essence of the risk sharing (transfer) response.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Risk Assessment & Management 2