Question

Internal auditors are working to become trusted advisors to management on risk management techniques. Which of the following would be the best way for internal audit to demonstrate they are truly a trusted advisor?

1) By providing regular updates on risk management practices
2) By conducting independent risk assessments
3) By recommending changes to risk management policies
4) By collaborating with management on risk mitigation strategies

Answer 1

The best way for internal auditors to demonstrate that they are trusted advisors to management on risk management techniques is by collaborating with management on risk mitigation strategies.

Step-by-step explanation:

The best way for internal auditors to demonstrate that they are trusted advisors to management on risk management techniques is by collaborating with management on risk mitigation strategies. By working closely with management, internal auditors can provide valuable insights and recommendations based on their expertise. This collaborative approach allows the auditors to build trust with management and be seen as a key partner in managing organizational risks.

In addition to collaboration, conducting independent risk assessments is another important way for internal auditors to demonstrate their advisory role. By conducting assessments free from any conflicts of interest, auditors can provide an objective and unbiased assessment of the organization's risk posture.

While providing regular updates on risk management practices and recommending changes to risk management policies are also important activities, they may not necessarily demonstrate the same level of trust and advisory role as collaboration and independent risk assessments.