Which factor is NOT included in the internal audit risk assessment measurement?

The key to understanding why annual revenue is not included in the internal audit risk assessment measurement lies in the focus and objectives of an internal audit. Internal audit risk assessments are primarily concerned with evaluating risks that could impact the achievement of the organization's objectives and the efficiency of operations. These assessments typically consider factors like portfolios, organizational change, and business exposure because they directly relate to changes in strategy, structure, or the operating environment that could introduce various risks.

Portfolios are crucial in assessing risks related to investments and operational effectiveness. Organizational change evaluates how shifts in the structure or strategy might affect processes and controls. Business exposure involves analyzing the risks associated with external factors like market conditions, regulatory changes, or competitive pressures, which can influence the potential for losses.

In contrast, while annual revenue is a significant measure of financial performance, it is not inherently tied to the specific risk factors that auditors assess when evaluating an organization’s internal controls and processes. Revenue may be influenced by many external factors that do not directly correlate with the internal control environment or organizational risks, making it less relevant for the risk assessment process in internal auditing.