CRMA Coordinating Assurance Efforts 2

Question 1

What is the primary purpose of an assurance map in a coordinated assurance framework?

Accepted Answer

To visually display which assurance providers cover which risks and identify gaps or overlaps

Answer

To rank individual auditors by their level of professional certification

Answer

To document the budget allocated to each line of defense activity

Answer

To replace the internal audit's annual risk assessment process

Question 2

When internal audit chooses to rely on work performed by another assurance provider, what is the CAE's primary obligation?

Accepted Answer

Evaluate the competence, objectivity, and quality of the other provider's work

Answer

Obtain approval from the external auditors before accepting any reliance

Answer

Reduce the internal audit budget proportionally to the work relied upon

Answer

Disclose the reliance only if the audit committee specifically requests it

Question 3

Which document most formally defines the scope, responsibilities, and interaction protocols among all assurance providers in an organization?

Accepted Answer

A combined assurance charter or memorandum of understanding

Answer

The annual internal audit plan

Answer

The organization's code of ethics

Answer

The external auditor's engagement letter

Question 4

Coverage duplication occurs when multiple assurance providers independently test the same control without coordination. What is the MOST significant risk of this situation?

Accepted Answer

Wasted resources and increased burden on control owners without proportional risk reduction

Answer

Excessive assurance coverage that improves risk detection accuracy

Answer

Inflated assurance budgets that benefit shareholders

Answer

External auditors losing access to internal audit workpapers

Question 5

When coordinating with external auditors, internal audit should primarily focus on which of the following?

Accepted Answer

Sharing risk assessments, audit plans, and relevant workpapers to minimize duplication and coverage gaps

Answer

Replicating external audit procedures to confirm their accuracy

Answer

Restricting access to internal workpapers to protect independence

Answer

Replacing substantive external audit testing with management self-assessments

Question 6

An assurance map reveals that a high-inherent-risk area has no current assurance coverage from any provider. What should the CAE recommend?

Accepted Answer

Immediately escalate the gap to the board and recommend assurance coverage be assigned

Answer

Accept the gap because management has already evaluated that risk

Answer

Request that the external auditors add the area to their scope without further analysis

Answer

Remove the risk from the risk register to avoid board concern

Question 7

Internal audit identifies that the compliance function is independently testing the same IT general controls as internal audit. What is the BEST immediate response?

Accepted Answer

Meet with the compliance function to coordinate scope, leverage each other's results, and eliminate redundancy

Answer

Continue both programs independently to benefit from double verification

Answer

Notify the audit committee that compliance is encroaching on internal audit territory

Answer

Discontinue internal audit testing and rely entirely on compliance results without evaluation