IIA Exam IIA-CIA-Part1 Topic 2 Question 45 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 45
Topic #: 2

An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

AThe inherent risk will be mitigated to a level lower than the residual risk.

BThe inherent risk will be reduced to an acceptable level.

CThe residual risk will be reduced to an acceptable level.

DThe residual risk will be eliminated

Show Suggested Answer

Suggested Answer: C

by Brandon at Mar 08, 2024, 04:56 AM

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Beatriz

3 months ago

Option A? Mitigating the inherent risk to lower than the residual risk? Sounds like a job for the Incredible Hulk or maybe a physics-defying superhero.

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Taryn

1 months ago

C) The residual risk will be reduced to an acceptable level.

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Dorothy

2 months ago

B) The inherent risk will be reduced to an acceptable level.

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Sheldon

2 months ago

A) The inherent risk will be mitigated to a level lower than the residual risk.

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Ollie

3 months ago

Option D, really? Eliminating residual risk? That's as likely as a steel plant having a moat and alligators to keep the thieves out.

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Dierdre

3 months ago

I'm going to have to go with Option B. The controls should bring the inherent risk down to an acceptable level. Anything less wouldn't be good enough.

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Nelida

3 months ago

I agree with Elise. The plant is trying to manage the risk, not eliminate it entirely. Option C is the correct answer.

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Rex

1 months ago

Yes, I believe so. The residual risk should be reduced to an acceptable level with those controls in place.

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Gary

2 months ago

So you think option C is the correct answer then?

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Lezlie

2 months ago

I agree, they can't completely eliminate the risk but they can reduce it to an acceptable level.

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Shenika

3 months ago

I think the plant is taking the right approach by implementing those controls.

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Elise

3 months ago

Option C seems like the most likely outcome. The controls aim to reduce the residual risk to an acceptable level, not eliminate it completely.

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Karina

3 months ago

I believe the correct answer is C) The residual risk will be reduced to an acceptable level because it is not always possible to completely eliminate all risks.

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Lenita

3 months ago

I agree with Lynette. The controls are put in place to reduce the risk, not eliminate it completely.

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Lynette

3 months ago

I think the internal auditor would hope to see the residual risk reduced to an acceptable level.

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