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

An assurance map is a visual tool that shows an organization's key risks and the different internal and external assurance providers covering those risks. Its main purpose is to clearly display where assurance is being provided, by whom, and to what extent, which makes it highly effective for identifying areas with overlapping or redundant assurance activities, as well as critical risk areas that may have insufficient coverage.

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

IIA Standard 2050, "Coordination and Reliance," requires the CAE to consider the competency, objectivity, and due professional care of the assurance provider before relying on their work. The CAE must also understand the scope, objectives, and results of the work performed. This evaluation is crucial to determine if the work is credible and can be used to support internal audit's own conclusions, for which the CAE remains ultimately responsible.

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

The primary strategic benefit of combined assurance is to break down silos between different assurance providers (e.g., internal audit, compliance, risk management, external audit). This coordination provides the governing body and senior management with a comprehensive, aggregated view of the organization's risk profile and the effectiveness of its controls, leading to better-informed strategic decisions.

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

Assurance fatigue occurs when management and staff are overburdened by requests from multiple, uncoordinated assurance providers. A coordinated or combined assurance approach, often driven by the audit committee, directly addresses this by streamlining the activities of all providers, minimizing redundant efforts, and ensuring that reviews are planned efficiently.

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

A key benefit of coordinating assurance is establishing a common language or taxonomy for risk across the organization. By aligning with the risk taxonomy and methodology developed by the second line (after ensuring its appropriateness), the CAE can improve communication, facilitate information sharing, and provide more consistent reporting to the board and management, thereby enhancing the overall effectiveness of risk management and assurance.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

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