CIRA Cheat Sheet 2026

The 30 highest-yield CIRA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the MOST effective way for new CIRA professionals to build competency? → Combining formal education, mentored practice, and ongoing professional development
2. Which valuation approach estimates a company's value based on the present value of its projected future cash flows? → Discounted Cash Flow (DCF)
3. What governs insolvency proceedings in the U.S.? → U.S. Bankruptcy Code
4. What does compliance with regulations ensure? → Follow laws and avoid penalties
5. Which foundational principle is MOST important for success in Certified Insolvency & Restructuring Advisor? → Commitment to continuous learning, ethical practice, and quality outcomes
6. What is the PRIMARY purpose of obtaining CIRA certification in Certified Insolvency & Restructuring Advisor? → To demonstrate verified competency and adherence to professional standards
7. Which of the following best describes 'enterprise value' (EV) in a restructuring analysis? → Total value of the business to all capital providers, including debt and equity
8. What documentation is MOST critical to maintain for safety compliance in the Certified Insolvency & Restructuring Advisor field? → Incident reports, training records, and inspection logs
9. When a CIRA professional identifies a potential regulatory violation, the CORRECT first step is to: → Document the violation and report through proper channels
10. Which of the following is a primary purpose of a 'variance analysis' in a 13-week cash flow report? → To compare actual cash flows against forecast and explain material deviations
11. What is the BEST way for a Certified Insolvency & Restructuring Advisor professional to stay current with regulatory changes? → Monitor regulatory bodies, attend CE, and participate in professional associations
12. Which act focuses on protecting consumer financial privacy? → Gramm-Leach-Bliley Act
13. Which of the following best describes 'Debtor-in-Possession' (DIP) financing? → Post-petition financing that typically receives super-priority status
14. When a CIRA professional faces pressure to compromise professional standards, the BEST response is to: → Document the pressure and uphold professional standards
15. Which party typically files a 'proof of claim' in a Chapter 11 bankruptcy case? → A creditor asserting a right to payment from the debtor's estate
16. Which risk management approach is MOST effective for CIRA professionals when evaluating potential workplace hazards? → Proactive hazard identification and assessment
17. When evaluating a distressed company's liquidity, a restructuring advisor would be most concerned about which combination of conditions? → High DSO and low days payable outstanding (DPO)
18. Which regulatory requirement is UNIVERSAL across all Certified Insolvency & Restructuring Advisor practice settings? → Maintaining current certification and continuing education
19. Why is preparation important in workouts? → Understand financials and points
20. What does 'liquidity risk' mean in the context of insolvency analysis? → The risk that a company cannot meet its financial obligations as they come due
21. A company's days sales outstanding (DSO) increased from 30 to 60 days during a distress period. What is the most likely cash flow implication? → Delayed cash collections reducing available liquidity
22. Which metric best measures a company's ability to meet short-term obligations without selling inventory? → Quick ratio
23. What distinguishes a Certified Insolvency & Restructuring Advisor certified professional from a non-certified practitioner? → Certification validates competency through standardized assessment against benchmarks
24. When a CIRA uses the 'net realizable value' (NRV) method for inventory in distress, which adjustment is most common? → Reduce book value to reflect expected selling price less costs to complete and sell
25. What is 'adequate protection' in the context of a secured creditor's cash collateral rights in Chapter 11? → Compensation or security provided to prevent diminution of a secured creditor's interest
26. When a CIRA professional identifies a potential regulatory violation, the CORRECT first step is to: → Document the violation and report through proper channels
27. When conducting a risk assessment for CIRA operations, which factor should receive the HIGHEST priority? → Probability and severity of potential harm
28. Which of the following is NOT typically included in a 'minimum cash balance' requirement in a DIP credit agreement? → Equity distribution to shareholders
29. Which EBITDA multiple adjustment is most appropriate when valuing a distressed company relative to a healthy peer group? → Apply a discount to reflect higher risk, illiquidity, and uncertainty
30. How does financial analysis aid insolvency advisors? → Identify strengths and weaknesses