IIA Exam IIA-CIA-Part3-3P Topic 5 Question 35 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 35
Topic #: 5

Which of the following statements is correct regarding risk analysis?

AThe extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

BThe highest risk assessment should always be assigned to the area with the largest potential loss.

CThe highest risk assessment should always be assigned to the area with the highest probability of
occurrence.

DRisk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Show Suggested Answer

Suggested Answer: B

by Sheron at Dec 21, 2023, 02:27 AM

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Inocencia

2 months ago

I'm going with A. The auditor needs to use their professional judgment, not just rely on the numbers.

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Filiberto

22 days ago

User 3: I'm leaning towards C, probability of occurrence is crucial in risk analysis.

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Stephaine

24 days ago

User 2: I think B is more accurate, the potential loss should be the main focus.

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Hortencia

2 months ago

User 1: I agree with you, A is the correct statement.

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Mariko

2 months ago

B seems too simplistic. Risk analysis isn't just about the biggest numbers, it's about understanding the whole picture and all the factors involved.

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Reed

3 months ago

Haha, D is clearly the funniest answer. As if we can ever fully quantify risk - it's more art than science!

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Kiera

1 months ago

C) The highest risk assessment should always be assigned to the area with the highest probability of occurrence.

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Simona

1 months ago

B) The highest risk assessment should always be assigned to the area with the largest potential loss.

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Thurman

2 months ago

A) The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

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Chana

3 months ago

But A makes sense because management judgments play a key role in risk analysis.

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Shaquana

3 months ago

I disagree, I believe it's C.

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Chana

3 months ago

I think the correct statement is A.

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Mari

3 months ago

I disagree, I believe C is the right answer. The highest risk should be assigned to the area with the highest probability of occurrence, not just the largest potential loss.

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Elvis

2 months ago

I agree with you, C is the right answer. Probability of occurrence is crucial in assessing risk.

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Elvis

2 months ago

I think A is correct. Management judgments play a big role in risk analysis.

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Dorethea

2 months ago

I agree with you, C is the best choice. Probability of occurrence is crucial in risk assessment.

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Dorethea

3 months ago

I think A is correct. Management judgments play a big role in risk analysis.

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Rory

3 months ago

I think A is the correct answer. The auditor should consider management's judgments and expertise in assessing risk, not just the potential loss or probability.

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