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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

While planning the audit of Kaveri Pharma's procurement, the internal auditor lists key risks, identifies the controls meant to mitigate each, and then tests only whether those controls operate as designed. Which document is the auditor preparing?

The auditor is preparing a risk and control matrix. It maps each identified risk to the controls designed to mitigate it and to the audit tests of those controls, which supports a risk-based audit approach and focused testing.

  1. ARisk and control matrixCorrect
  2. BManagement representation letter
  3. CStatutory auditor's management letter
  4. DTrial balance extract

Explanation

A risk and control matrix maps each identified risk to its mitigating controls and the planned tests of those controls. The other documents serve different purposes and do not link risks to controls.

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