CRMA - Certification in Risk Management Assurance Coordinating Assurance Efforts Questions and Answers

Question 1

A Chief Audit Executive (CAE) is developing a combined assurance plan.
A primary tool for this process is an assurance map.
Which of the following is the MOST important benefit of developing an assurance map?

Accepted Answer

It visually depicts assurance coverage, which helps to identify gaps and duplications of effort.

Answer

It provides a basis for the external auditor's opinion on the financial statements.

Answer

It guarantees the complete elimination of all business risks.

Answer

It assigns sole responsibility for risk management to the internal audit activity.

Question 2

In a mature combined assurance model, the CAE plans to rely on the work of the second-line compliance function, which recently conducted a review of regulatory adherence. According to IIA Standard 2050, before placing reliance on the compliance function's work, the CAE must first:

Accepted Answer

Assess the competency, objectivity, and due professional care of the compliance function.

Answer

Obtain approval from the external auditors.

Answer

Re-perform all the tests conducted by the compliance team.

Answer

Assume responsibility for the day-to-day management of the compliance function.

Question 3

Which of the following is the most significant strategic benefit of implementing a combined assurance model for an organization?

Accepted Answer

Providing a more holistic and coordinated view of risk and assurance to the board and senior management.

Answer

Reducing the budget of the internal audit department by outsourcing its functions.

Answer

Fulfilling the minimum requirements for the external financial statement audit.

Answer

Shifting all accountability for risk management from management to assurance providers.

Question 4

The audit committee of a large, multinational corporation is concerned about 'assurance fatigue' in its business units, which are being repeatedly reviewed by different functions. To address this, the audit committee should champion the implementation of:

Accepted Answer

A coordinated assurance approach to minimize duplication and align provider activities.

Answer

A more aggressive internal audit plan focused on financial controls.

Answer

A policy to reduce the frequency of all assurance activities.

Answer

An increase in the number of external assurance providers.

Question 5

When coordinating assurance efforts, the Chief Audit Executive (CAE) learns that the second-line risk management function has developed a comprehensive risk taxonomy and rating methodology. What is the CAE's most appropriate action to enhance coordination?

Accepted Answer

Adopt the same taxonomy and methodology for internal audit's risk-based planning, where appropriate.

Answer

Ignore the second line's work to maintain internal audit's independence.

Answer

Instruct the risk management function to cease its activities to avoid overlap.

Answer

Develop a completely separate and conflicting risk taxonomy for internal audit.

Question 6

Even when the internal audit activity relies on the work of other assurance providers (internal or external), who retains the ultimate responsibility for the internal audit activity's conclusions and opinions?

Accepted Answer

The Chief Audit Executive (CAE).

Answer

The board of directors.

Answer

The other assurance provider whose work was used.

Answer

The organization's senior management.

A Chief Audit Executive (CAE) is developing a combined assurance plan.A primary tool for this process is an assurance map.Which of the following is the MOST important benefit of developing an assurance map?

A Chief Audit Executive (CAE) is developing a combined assurance plan.
A primary tool for this process is an assurance map.
Which of the following is the MOST important benefit of developing an assurance map?