CERTIFIED IN RISK MANAGEMENT ASSURANCE (CRMA)
CERTIFICATION EXAM PRACTICE QUESTIONS AND
ANSWERS: THE MOST RECENT AND COMPREHENSIVE
VERSION WITH VERIFIED ANSWERS; GUARANTEED PASS
WITH INSTANT PDF DOWNLOAD.
Exam Overview:
This exam is designed to comprehensively assess competencies required for the Certified in Risk
Management Assurance (CRMA) credential in alignment with the standards of the Institute of Internal
Auditors (IIA). The assessment reflects current professional frameworks including the International
Professional Practices Framework (IPPF), Enterprise Risk Management (ERM), governance, assurance,
internal control, risk-based auditing, ethics, fraud risk, compliance, IT risk, data governance, ESG, and
emerging risk practices.
Structure:
Total Questions: 150 multiple-choice questions
Section 1: Questions 1–50 (Governance, Risk Management, ERM Frameworks, Internal Control)
Section 2: Questions 51–100 (Assurance, Risk-Based Internal Audit, Control Evaluation, IT &
Data Risk, Compliance, Fraud)
Section 3: Questions 101–150 (Strategic Risk, ESG, Culture, Emerging Risks, Advisory
Engagements, Ethics & Professional Judgment)
1. The primary objective of Enterprise Risk Management (ERM) is to:
A. Eliminate all organizational risk
B. Ensure regulatory compliance
C. Provide reasonable assurance regarding achievement of objectives
D. Increase internal audit coverage
ERM is designed to manage risk within appetite to provide reasonable assurance
that strategic, operational, reporting, and compliance objectives are achieved.
2. According to the Committee of Sponsoring Organizations of the Treadway
Commission ERM framework, risk appetite is best defined as:
A. Maximum loss before bankruptcy
B. Amount of risk an organization is willing to accept in pursuit of value
, C. Tolerance level for operational error
D. Minimum expected return
Risk appetite reflects the board-approved level of risk acceptable in achieving
objectives.
3. The board’s primary responsibility in risk governance is to:
A. Execute risk responses
B. Develop operational controls
C. Oversee risk management and approve risk appetite
D. Perform internal audits
The board provides oversight, approves risk appetite, and ensures ERM
effectiveness.
4. In the three lines model promoted by the Institute of Internal Auditors,
internal audit serves as:
A. First line
B. Second line
C. Third line providing independent assurance
D. Executive management
Internal audit independently evaluates governance, risk, and control processes.
5. Which component of internal control addresses integrity and ethical values?
A. Control activities
B. Monitoring
C. Information & communication
D. Control environment
,The control environment sets the tone at the top and ethical foundation.
6. A risk with high likelihood but low impact would most likely be categorized
as:
A. Critical
B. Strategic
C. Moderate or operational priority
D. Catastrophic
High frequency but low impact risks are often managed through routine
operational controls.
7. Risk tolerance differs from risk appetite because it:
A. Is broader than appetite
B. Eliminates residual risk
C. Specifies acceptable variation around objectives
D. Is set by management only
Risk tolerance defines acceptable deviations from objectives.
8. An inherent risk assessment occurs:
A. After controls are applied
B. During monitoring
C. Before considering existing controls
D. Only during external audit
Inherent risk is the risk before control mitigation.
9. Residual risk represents:
A. Risk ignored by management
, B. Risk remaining after controls are applied
C. Risk transferred via insurance
D. Fraud exposure
Residual risk remains after risk response implementation.
10.The most effective method for identifying emerging risks is:
A. Reviewing last year’s audit plan
B. Compliance checklist
C. Continuous environmental scanning and stakeholder engagement
D. Waiting for regulatory changes
Emerging risks require proactive and forward-looking identification processes.
11.Governance structures are most effective when they:
A. Eliminate conflict
B. Focus only on financial reporting
C. Define clear roles, responsibilities, and accountability
D. Are centralized in one executive
Clarity in accountability strengthens governance effectiveness.
12.Which of the following is a strategic risk?
A. Payroll error
B. IT password weakness
C. Failure to adapt to disruptive technology
D. Duplicate payment
Strategic risks affect long-term direction and competitiveness.
CERTIFICATION EXAM PRACTICE QUESTIONS AND
ANSWERS: THE MOST RECENT AND COMPREHENSIVE
VERSION WITH VERIFIED ANSWERS; GUARANTEED PASS
WITH INSTANT PDF DOWNLOAD.
Exam Overview:
This exam is designed to comprehensively assess competencies required for the Certified in Risk
Management Assurance (CRMA) credential in alignment with the standards of the Institute of Internal
Auditors (IIA). The assessment reflects current professional frameworks including the International
Professional Practices Framework (IPPF), Enterprise Risk Management (ERM), governance, assurance,
internal control, risk-based auditing, ethics, fraud risk, compliance, IT risk, data governance, ESG, and
emerging risk practices.
Structure:
Total Questions: 150 multiple-choice questions
Section 1: Questions 1–50 (Governance, Risk Management, ERM Frameworks, Internal Control)
Section 2: Questions 51–100 (Assurance, Risk-Based Internal Audit, Control Evaluation, IT &
Data Risk, Compliance, Fraud)
Section 3: Questions 101–150 (Strategic Risk, ESG, Culture, Emerging Risks, Advisory
Engagements, Ethics & Professional Judgment)
1. The primary objective of Enterprise Risk Management (ERM) is to:
A. Eliminate all organizational risk
B. Ensure regulatory compliance
C. Provide reasonable assurance regarding achievement of objectives
D. Increase internal audit coverage
ERM is designed to manage risk within appetite to provide reasonable assurance
that strategic, operational, reporting, and compliance objectives are achieved.
2. According to the Committee of Sponsoring Organizations of the Treadway
Commission ERM framework, risk appetite is best defined as:
A. Maximum loss before bankruptcy
B. Amount of risk an organization is willing to accept in pursuit of value
, C. Tolerance level for operational error
D. Minimum expected return
Risk appetite reflects the board-approved level of risk acceptable in achieving
objectives.
3. The board’s primary responsibility in risk governance is to:
A. Execute risk responses
B. Develop operational controls
C. Oversee risk management and approve risk appetite
D. Perform internal audits
The board provides oversight, approves risk appetite, and ensures ERM
effectiveness.
4. In the three lines model promoted by the Institute of Internal Auditors,
internal audit serves as:
A. First line
B. Second line
C. Third line providing independent assurance
D. Executive management
Internal audit independently evaluates governance, risk, and control processes.
5. Which component of internal control addresses integrity and ethical values?
A. Control activities
B. Monitoring
C. Information & communication
D. Control environment
,The control environment sets the tone at the top and ethical foundation.
6. A risk with high likelihood but low impact would most likely be categorized
as:
A. Critical
B. Strategic
C. Moderate or operational priority
D. Catastrophic
High frequency but low impact risks are often managed through routine
operational controls.
7. Risk tolerance differs from risk appetite because it:
A. Is broader than appetite
B. Eliminates residual risk
C. Specifies acceptable variation around objectives
D. Is set by management only
Risk tolerance defines acceptable deviations from objectives.
8. An inherent risk assessment occurs:
A. After controls are applied
B. During monitoring
C. Before considering existing controls
D. Only during external audit
Inherent risk is the risk before control mitigation.
9. Residual risk represents:
A. Risk ignored by management
, B. Risk remaining after controls are applied
C. Risk transferred via insurance
D. Fraud exposure
Residual risk remains after risk response implementation.
10.The most effective method for identifying emerging risks is:
A. Reviewing last year’s audit plan
B. Compliance checklist
C. Continuous environmental scanning and stakeholder engagement
D. Waiting for regulatory changes
Emerging risks require proactive and forward-looking identification processes.
11.Governance structures are most effective when they:
A. Eliminate conflict
B. Focus only on financial reporting
C. Define clear roles, responsibilities, and accountability
D. Are centralized in one executive
Clarity in accountability strengthens governance effectiveness.
12.Which of the following is a strategic risk?
A. Payroll error
B. IT password weakness
C. Failure to adapt to disruptive technology
D. Duplicate payment
Strategic risks affect long-term direction and competitiveness.
