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Effective use of risk assessment techniques allows management to:
Determine weaknesses in the organization
Identify areas that would most benefit from outsourcing
Provide assurance to internal stakeholders
Effectively allocate limited resources
Risk assessment techniques are used to identify high-risk areas, so that limited resources like audit staff and budget, can be allocated to where they will make the most impact. THIS IS SO CONFUSING!!! Which is the right answer? The answer key says "determine weaknesses in the organization" but the explanation seems to say "effectively allocate limited resources" Can someone in the know clear this up?
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