Risk assessments are valuable to the internal audit activity's planning process because they assist in:
A) Eliminating all areas with low risk from the audit plan.
B) Educating management on the importance of keeping the internal audit activity informed of organizational changes.
C) Identifying the audit universe or auditable activities that need to be reviewed.
D) Identifying risks that management and the internal auditors have overlooked.

Question

Quizplus · Accepted Answer

Risk assessments help identify the audit universe or auditable activities that need to be reviewed, ensuring that the internal audit activity focuses on areas of significance and potential risk.

Risk Assessments Are Valuable to the Internal Audit Activity's Planning