hardMultiple ChoiceObjective-mapped
CRISC Practice Question: Refer to the exhibit
Exhibit
Risk Control Matrix (RCM) Extract - Control Test Results Date: 2024-11-20 Process: Order-to-Cash Test ID: OTC-001 Control Description: Segregation of duties between order entry and credit approval. Test Result: FAIL Finding: User ID 'jdoe' performed both order entry and credit approval on transaction ID 78965. Test ID: OTC-002 Control Description: Automatic validation of credit limit within ERP. Test Result: PASS Test ID: OTC-003 Control Description: Monthly reconciliation of accounts receivable. Test Result: NOT TESTED
Refer to the exhibit. Based on the control test results, which of the following is the most immediate risk?
⚠ Common exam trap
The trap here is that candidates often focus on the financial reporting impact (Option A) as the most immediate risk, but CRISC emphasizes that the control deficiency itself—the lack of segregation of duties—creates an immediate fraud exposure before any financial misstatement can occur.
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
✓
Fraud due to lack of segregation of duties
The control test results show that the same individual can both create purchase orders and approve invoices, which violates segregation of duties. This lack of segregation creates an immediate risk of fraud because the employee could create fictitious orders and approve payments to themselves or accomplices without detection.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Material misstatement in financial statements
Why it's wrong here
While possible, the immediate risk is the breakdown in segregation of duties leading to potential fraud, not necessarily a misstatement.
- ✗
Non-compliance with credit policy
Why it's wrong here
The failed control is about segregation of duties, not specifically about credit policy compliance.
- ✗
Inefficient order processing
Why it's wrong here
Inefficiency is not directly indicated; the risk is more about control weakness.
- ✓
Fraud due to lack of segregation of duties
Why this is correct
The failed control directly indicates that a user can both enter and approve orders, increasing the risk of fraudulent transactions.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CRISC exam.