Certified Government Auditing Professional (CGAP) Practice Exam

What role do auditors play in an organization's risk management system?

1. They should not be involved in risk management activities.

2. They have a responsibility to monitor and evaluate the risk management system.

3. They are solely responsible for implementing the risk management policies.

4. They provide only advisory services to the risk management team.

The correct answer is: They have a responsibility to monitor and evaluate the risk management system.

Auditors play a vital role in an organization's risk management system primarily through their responsibility to monitor and evaluate its effectiveness. In this capacity, they assess how well the organization identifies, analyzes, and responds to risks, providing valuable insights that help improve the overall risk management framework. This monitoring and evaluating function ensures that the risk management processes are robust and aligned with the organization's objectives. Auditors bring an objective perspective, analyzing the effectiveness of risk responses and controls in place. They check for compliance with relevant regulations and standards, and they also identify any gaps or weaknesses that could expose the organization to risks. Engaging in this evaluative role allows auditors to provide assurance to stakeholders regarding the health of the risk management system. This assurance helps ensure that the organization not only complies with applicable laws and regulations but also effectively manages potential risks that could impede its operations. The other choices were less aligned with the role of auditors. For example, stating that auditors should not be involved in risk management activities overlooks the critical oversight function they provide. The notion that auditors are solely responsible for implementing risk management policies misrepresents their role, as implementation is typically the responsibility of management. Lastly, limiting auditors to only advisory services diminishes their essential responsibility to evaluate and assess the effectiveness of the