Certified Internal Auditor (CIA) Practice Test 2025 - Free CIA Practice Questions and Exam Prep Guide.

Using electronic funds transfer (EFT) instead of issuing checks is associated with the risk management technique of avoiding risk. This is because EFT minimizes certain risks inherent in issuing checks, such as the risk of check fraud, loss of physical checks, and delays in processing.

By switching to electronic transactions, organizations can effectively eliminate the risks associated with physical checks, such as theft or unauthorized alterations, thus avoiding potential financial losses. EFT systems typically provide greater security features, including encryption and real-time tracking, which further reduces the likelihood of fraud.

In contrast, other techniques such as accepting, transferring, or controlling risk involve different approaches to managing potential financial losses. Accepting risk would imply recognizing and tolerating certain risks, while transferring risk generally involves shifting the burden of financial impact to another party (such as through insurance). Controlling risk entails implementing measures to mitigate or manage risks rather than removing them altogether. Therefore, the decision to use EFT as a means of transaction illustrates a clear strategy to avoid risks connected to traditional check processing.