The correct conclusion is that the control is ineffective because the audit sample size is too small to detect the actual failure rate. This answer hinges on the concept of sample size adequacy in control testing: a sample of 50 transactions that shows no issues cannot reliably prove effectiveness when the continuous monitoring system has flagged 100 suspicious transactions as unreviewed. The sample simply lacked the statistical power to capture the known failures, meaning the audit’s conclusion was based on insufficient evidence. On the CRISC exam, this scenario tests your ability to reconcile conflicting evidence between periodic audit sampling and real-time monitoring, a common trap where candidates overvalue a clean sample while ignoring broader operational data. Remember that sample size must be statistically justified to detect expected error rates; if monitoring reveals actual failures, the sample is inadequate regardless of its results. A useful memory tip is “Sample size must match the risk—if monitoring shows failures, the sample is too small to prove effectiveness.”
CRISC Risk and Control Monitoring and Reporting Practice Question
This CRISC practice question tests your understanding of risk and control monitoring and reporting. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company's internal audit function reports that a detective control (manual review of transactions) is operating effectively based on a sample of 50 transactions showing no issues. However, the continuous monitoring system shows that 100 suspicious transactions were not reviewed during the same period. The control owner argues the control is effective. What is the BEST conclusion?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The control is ineffective because the audit sample size is too small to detect the actual failure rate.
Option D is correct because the audit sample of 50 did not include the suspicious transactions that the continuous monitoring flagged, indicating the sample size was insufficient to detect the actual failure rate. Option A is wrong because the sample alone does not prove effectiveness across all transactions. Option B is wrong because the monitoring system is likely reliable. Option C is wrong because the monitoring system is not necessarily too sensitive; it revealed actual failures.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
The control is effective because the monitoring system is too sensitive.
Why it's wrong here
There is no indication the monitoring system is overly sensitive.
✗
The control is ineffective because the monitoring system is unreliable.
Why it's wrong here
The monitoring system likely provides accurate data.
✓
The control is ineffective because the audit sample size is too small to detect the actual failure rate.
Why this is correct
The large number of unreviewed suspicious transactions indicates a control weakness that the sample missed.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
The control is effective because the sample showed no issues.
Why it's wrong here
The sample is not representative of the entire population.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CRISC exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which CRISC exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Risk and Control Monitoring and Reporting — This question tests Risk and Control Monitoring and Reporting — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The control is ineffective because the audit sample size is too small to detect the actual failure rate. — Option D is correct because the audit sample of 50 did not include the suspicious transactions that the continuous monitoring flagged, indicating the sample size was insufficient to detect the actual failure rate. Option A is wrong because the sample alone does not prove effectiveness across all transactions. Option B is wrong because the monitoring system is likely reliable. Option C is wrong because the monitoring system is not necessarily too sensitive; it revealed actual failures.
What should I do if I get this CRISC question wrong?
Identify which CRISC exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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