easyMultiple ChoiceObjective-mapped
CRISC Practice Question: A manufacturing company's board of directors…
A manufacturing company's board of directors receives a monthly risk report. Which key performance indicator (KPI) is MOST relevant for the board to assess the effectiveness of internal controls?
⚠ Common exam trap
It's easy for candidates to confuse activity-based metrics (like number of assessments or training completion) with outcome-based metrics that directly measure control effectiveness, leading them to select options that sound relevant but do not answer the board's specific need for control performance assurance.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Percentage of control tests passed within the reporting period.
The percentage of control tests passed within the reporting period directly measures the operational effectiveness of internal controls, which is the board's primary concern for risk mitigation. This KPI provides a quantifiable, trendable metric that reflects whether controls are functioning as designed to reduce residual risk to an acceptable level.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Number of audit findings per business unit.
Why it's wrong here
Audit findings are lagging indicators of control failures.
- ✗
Number of risk assessments completed this month.
Why it's wrong here
This indicates activity, not effectiveness.
- ✗
Percentage of employees completing annual compliance training.
Why it's wrong here
Training is a control activity, not a measure of control effectiveness.
- ✓
Percentage of control tests passed within the reporting period.
Why this is correct
Directly measures control effectiveness.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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