Preliminary risk assessments are conducted for which of the following reasons?

Preliminary risk assessments are primarily conducted to help determine engagement objectives. This is crucial for internal auditors as it allows them to identify and assess the potential risks associated with an audit area or specific organization. By understanding these risks, auditors can tailor their engagement objectives to focus on areas that require the most attention or scrutiny, leading to more effective and efficient audits.

Engagement objectives should align with the identified risks to ensure that the audit addresses the relevant issues that could impact the success or integrity of the organization. This approach not only enhances the value of the audit but also ensures that resources are allocated where they are needed most, thereby optimizing the overall audit process.

In contrast, while other options may appear relevant, they do not align as closely with the core purpose of preliminary risk assessments. For example, determining auditor qualifications pertains more to the selection of personnel rather than assessing risks, evaluating internal controls typically occurs after identifying risks, and establishing performance metrics is related to measuring outcomes rather than the initial risk assessment phase. Thus, focusing on engagement objectives is the fundamental reason for conducting a preliminary risk assessment.