Section: Volume D

Section: Volume D

Section: Volume B
Explanation:
As the sensitivity of the monitoring tool has to be changed, therefore it requires optimization of Key Risk Indicator. The monitoring tool which is giving alerts is itself acting as a risk indicator. Hence to change the sensitivity of the monitoring tool to give alert only for critical situations requires optimization of the KRI.
Incorrect Answers:
A, C, D: These options are not relevant to the change of sensitivity of the monitoring tools.

Section: Volume D

Internal Audit Review:
* An internal audit review of control design involves a thorough examination of the control's structure, implementation, and effectiveness.
* Auditors use a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Steps in Audit Review:
* Understand Control Objectives: Auditors ensure that the control is designed to meet specific risk management objectives.
* Evaluate Implementation: Check whether the control has been implemented as designed.
* Test Effectiveness: Perform tests to verify that the control operates effectively and consistently over time.
Importance of Audit Review:
* Provides independent and objective assurance that the control is appropriately designed and functioning as intended.
* Identifies any deficiencies or areas for improvement in the control design.
Comparing Other Validation Methods:
* Senior Management Approval: Indicates support but does not validate effectiveness.
* Documentation of Control Objectives: Important for understanding intent but not validation.
* Control Owner Attestation: Provides insight but lacks the independence of an audit.
References:
* The CRISC Review Manual highlights the role of internal audits in validating control design and ensuring effective risk management (CRISC Review Manual, Chapter 3: Risk Response and Mitigation, Section 3.9 Control Testing and Effectiveness Evaluation).