CRMA - Certification in Risk Management Assurance Internal Audit's Assurance Role Questions and Answers

Question 1

According to IIA Standards, which of the following is the most fundamental role of the internal audit activity in providing risk management assurance?

Accepted Answer

Providing independent and objective assurance on the effectiveness of risk management processes.

Answer

Developing and implementing the organization's risk management framework.

Answer

Assuming management's responsibility for responding to identified risks.

Answer

Setting the organization's risk appetite and tolerance levels.

Question 2

A Chief Audit Executive (CAE) is planning the annual audit plan. Management has requested that the internal audit team design and implement a new control system for a recently identified high-risk area. How should the CAE respond to this request to maintain the integrity of internal audit's assurance role?

Accepted Answer

Decline the engagement, explaining that designing and implementing controls would impair internal audit's independence for future audits of that area.

Answer

Accept the engagement as a special assurance project to ensure it is done correctly.

Answer

Accept the engagement but disclose the impairment in the final audit report for that area.

Answer

Outsource the design and implementation to a third party and oversee their work.

Question 3

When providing assurance on the effectiveness of risk management processes, an internal auditor's assessment should primarily focus on determining that:

Accepted Answer

Significant risks are identified and assessed, and risk responses align with the organization's risk appetite.

Answer

All possible risks have been completely eliminated.

Answer

The organization has the lowest possible operational costs.

Answer

The implemented controls are the most technologically advanced available.

Question 4

Which of the following activities falls squarely within internal audit's assurance role, as opposed to a consulting role?

Accepted Answer

Providing an independent assessment on the design and operating effectiveness of the risk management framework.

Answer

Facilitating management's risk identification and assessment workshops.

Answer

Championing the initial adoption of an Enterprise Risk Management (ERM) framework within the organization.

Answer

Advising on control design during the development of a new system.

Question 5

An organization's internal audit activity is evaluating the risk management process. Which of the following would provide the best evidence that the process is effective and mature?

Accepted Answer

Risk information is actively used to inform strategic and operational decision-making across the organization.

Answer

The organization has a dedicated risk management department.

Answer

A comprehensive list of risks is presented to the board annually.

Answer

The internal audit activity is responsible for identifying and assessing all key risks.

Question 6

In its assurance capacity, the internal audit activity provides assurance to the board that which of the following areas are effective?

Accepted Answer

The design of risk management processes, the management of key risks, and the reporting of risk status.

Answer

Shareholder value maximization strategies.

Answer

The implementation of all management action plans, regardless of risk level.

Answer

The performance of the external auditors and their audit strategy.