Drafting operational procedures for an area and then auditing the same area is considered a threat to an internal auditor's objectivity because the auditor may be auditing their own work. This situation presents a self-review threat, where the auditor's independence can be compromised as they might be biased towards the procedures they themselves have created.References: IIA Standard 1120 - Objectivity, which states that internal auditors should not audit their own work or provide assurance on activities for which they were previously responsible.

The chief audit executive (CAE) is responsible for assuring that all required components are included in the internal audit charter. The CAE must ensure that the charter clearly defines the purpose, authority, and responsibility of the internal audit activity, and that it aligns with the standards set by the Institute of Internal Auditors (IIA). The CAE is also responsible for presenting the charter to senior management and the board for approval.
References:
* The IIA Standards: Standard 1000 - Purpose, Authority, and Responsibility: "The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval."
* IIA Practice Guide: "Internal Audit Charter: Understanding the Components": Emphasizes the CAE's responsibility in developing and maintaining the charter.

The key principles approach to risk management involves evaluating whether the organization's risk management practices align with fundamental principles, such as being an integral part of decision making, being transparent, responsive to change, and addressing uncertainty. This approach focuses on assessing the adherence to core risk management principles rather than specific processes or maturity levels.
The maturity model approach (A) assesses the level of sophistication and development of risk management practices. The process element approach (B) evaluates specific components of the risk management process.
The key performance indicators approach (D) focuses on using specific metrics to gauge the effectiveness of risk management.
The internal auditor's focus on the integration of risk management into decision making and its responsiveness to change aligns with the key principles approach as outlined in IIA guidance on risk management frameworks.
References:
* IIA Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000
* IIA Position Paper: The Role of Internal Auditing in Enterprise-Wide Risk Management

Residual risk is the remaining risk after management has implemented risk responses. The auditor is assessing what could still go wrong despite the effectiveness of the risk management technique in place, which is evaluating the remaining exposure to risk. References:
* IIA Standard 2120: Risk Management.
* COSO Enterprise Risk Management Framework.

According to IIA guidance, when implementing the risk management process in a dynamic agency, it is most appropriate that the risk management process should be regularly reviewed and respond to changes in the environment to remain relevant. This principle ensures that the risk management practices are flexible and adaptive, reflecting the dynamic nature of risk within a changing organizational and external environment.
This approach is consistent with both the IIA's guidance on risk management and the principles outlined in ISO 31000.References: The Institute of Internal Auditors (IIA) - Guidance on Risk Management, ISO 31000 Risk Management Guidelines.