Which characteristic of risk assessment makes it a useful tool for audit planning?

The chief audit executive (CAE) decided that based on management's oral response, the action taken on an audit observation for a minor improvement in the client's process is sufficient and no further follow-up is necessary. Which of the following would be the best statement regarding the action of the CAE?

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I. Financial measures.
II. Internal business process measures.
III. Client satisfaction measures.
IV.
Innovation and learning measures.

After becoming aware of control weaknesses indicating that a fraud could have been committed, which of the following actions should an internal auditor take next?

Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?
1.Activities requested by management should be considered higher risk than those requested by the audit committee.
2.Activities with lower budgets can be as high risk as those with higher budgets.
3.The potential financial or adverse exposure should always be considered in the assessment of risk.