An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?
A. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
B. Stakeholders will have more assurance that the risks are assessed consistently.
C. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
D. Management will be able to reduce inherent risk because they will have a better understanding of risk.
Answer:B
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?
A. Internal auditors will be able to reduce their sample sizes because controls will be more consistent. B. Stakeholders will have more assurance that the risks are assessed consistently. C. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced. D. Management will be able to reduce inherent risk because they will have a better understanding of risk.