Functions of the Auditor while Analyzing Risk

ACD.

A risk analysis involves identifying the most probable threats to an organization and analyzing the related vulnerabilities of the organization to these threats.

A risk from an organizational perspective consists of: -> Threats to various processes of organization.

-> Threats to physical and information assets.

-> Likelihood and frequency of occurrence from threat.

-> Impact on assets from threat and vulnerability.

-> Risk analysis allows the auditor to do the following tasks : -> Threats to various processes of organization.

-> Threats to physical and information assets.

-> Likelihood and frequency of occurrence from threat.

-> Impact on assets from threat and vulnerability.

-> Risk analysis allows the auditor to do the following tasks : -> Identify threats and vulnerabilities to the enterprise and its information system.

-> Provide information for evaluation of controls in audit planning.

-> Aids in determining audit objectives.

Supporting decision based on risks.

Incorrect Answers: B: Auditors identify threats and vulnerability not only in the IT but the whole enterprise as well.

The functions of the auditor while analyzing risk include:

A. Aids in determining audit objectives: The auditor should assist in determining the audit objectives by identifying the areas where risks exist and prioritizing them based on their significance. This helps in planning and executing the audit in a way that is more focused and effective.

C. Provide information for evaluation of controls in audit planning: The auditor should provide information about the controls that are in place to mitigate the identified risks. This information is essential for evaluating the effectiveness of controls and determining whether additional controls are needed.

D. Supporting decision based on risks: The auditor should provide recommendations based on the risks identified. These recommendations should be based on the auditor's professional judgment and expertise and should help management make informed decisions regarding risk management.

Therefore, the correct answers are A, C, and D.

B. Identify threats and vulnerabilities to the information system is not a function of the auditor while analyzing risk. Identifying threats and vulnerabilities is typically the responsibility of the organization's risk management team or IT department. The auditor's role is to assess the adequacy of the controls in place to mitigate these risks.