Output of Qualitative Risk AnalysisPROBABILITY & IMPACT MATRIX EXAMPLEImpact →Probability(81-100)%(61-80)%(41-60)%(21-40)%(1-20)%Negligible MinorLowRiskMinimumRiskMinimumRisk2MinimumRiskModerateRiskLowRiskLowRiskLowRiskMinimum MinimumRiskRiskModerate significant severeExtreme ExtremeRiskRiskHighRiskModerateRiskModerateRiskLowRiskLowRiskHighRiskHighRiskModerateRiskModerateRiskExtremeRiskHighRiskHighRiskHighRiskQ1- What is a probability impact matrix?Q2- how to make a risk assessment matrix?Q3- how to use the risk assessment matrix?

Probability impact matrix is 2 dimensional graphic risk assessment tool based on chances on…

Answered: Q1- What is a probability impact…

Q1- What is a probability impact matrix? Q2- how to make a risk assessment matrix? Q3- how to use the risk assessment matrix?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 7CYBK

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Question

Output of Qualitative Risk Analysis
PROBABILITY & IMPACT MATRIX EXAMPLE
Impact →
Probability
(81-100)%
(61-80)%
(41-60)%
(21-40)%
(1-20)%
Negligible Minor
Low
Risk
Minimum
Risk
Minimum
Risk
2
Minimum
Risk
Moderate
Risk
Low
Risk
Low
Risk
Low
Risk
Minimum Minimum
Risk
Risk
Moderate significant severe
Extreme Extreme
Risk
Risk
High
Risk
Moderate
Risk
Moderate
Risk
Low
Risk
Low
Risk
High
Risk
High
Risk
Moderate
Risk
Moderate
Risk
Extreme
Risk
High
Risk
High
Risk
High
Risk
Q1- What is a probability impact matrix?
Q2- how to make a risk assessment matrix?
Q3- how to use the risk assessment matrix?

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