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Which of the following is the primary reason the chief audit executive should consider the...

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Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

A.

Strategic plans reflect the organization's business objectives and overall attitude toward risk.

B.

Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.

C.

Strategic plans are likely to show areas of weak financial controls.

D.

The strategic plan is a relatively stable document on which to base audit planning.

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