An indicator that an organization's risk management processes are effective is that organization-wide mechanisms exist to enable the identification and assessment of all significant risks. This approach ensures that risks are managed on an enterprise-wide basis, aligning risk management strategies with the organization's objectives and promoting a comprehensive understanding and management of risks throughout the entity.
References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Risk Management in Practice

Section: Volume E

According to The IIA's Core Principles for the Professional Practice of Internal Auditing, one of the key principles is that internal auditors should be objective and free from undue influence (independence). The correct option that aligns with these principles is B, where final reports from consulting engagements provide a summary of findings and ensure that the auditor's advice is distinctly separated from management's decisions.
This separation supports the principle of objectivity and avoids conflicts of interest, which is fundamental in upholding the integrity and independence of the internal audit function.References:
* The IIA's Core Principles for the Professional Practice of Internal Auditing