CRMA Planning Risk-Based Engagements 3

Question 1

When presenting the risk-based engagement plan to the audit committee, the CAE should primarily communicate:

Accepted Answer

How audit resources are allocated based on identified risk priorities

Answer

The audit committee needs high-level assurance that resources are directed toward the highest-risk areas, not procedural detail.

Question 2

Which stakeholder group typically provides the most valuable input during the risk identification phase of engagement planning?

Accepted Answer

Senior management and business process owners

Answer

Process owners and senior management have the deepest operational knowledge of risks within their specific areas.

Question 3

Assigning audit staff based solely on availability rather than competency primarily risks:

Accepted Answer

Inadequate coverage of complex or specialized risk areas

Answer

Competency mismatches leave specialized or high-complexity risks inadequately assessed, undermining engagement quality.

Question 4

When coordinating with external auditors during risk-based planning, internal auditors should PRIMARILY:

Accepted Answer

Share risk assessments to eliminate duplication and fill coverage gaps

Answer

Coordination between internal and external auditors increases efficiency and ensures no significant risk area goes uncovered.

Question 5

A key limitation of relying solely on management's risk self-assessments during engagement planning is:

Accepted Answer

Management may understate risks to avoid scrutiny or negative attention

Answer

Management may have incentives to minimize reported risks, requiring internal audit to apply independent professional skepticism.

(CRMA) Certification in Risk Management Assurance Practice Test