The internal audit activity completed an initial risk analysis of the organization ' s data...

After an initial risk analysis identifies areas of concern, the next appropriate step is risk assessment. Risk assessment evaluates the significance of identified risks by considering likelihood, impact, control effectiveness, vulnerability, and priority. Risk identification has already occurred because several areas of concern were found. Identification of context normally occurs earlier, when the auditor or risk team defines objectives, scope, environment, criteria, and risk appetite. Risk response comes after assessment because management must understand the severity and priority of risks before deciding whether to accept, reduce, avoid, or share them. In internal audit planning, this sequence is critical because audit resources should be focused on higher-risk areas. Therefore, after initial risk analysis, the most appropriate next step is risk assessment, Option D.