CBA Internal Controls & Compliance 2

Question 1

Which control activity best addresses the risk of unauthorized access to a bank's core banking system?

Accepted Answer

Role-based access controls with periodic user access reviews

Answer

Role-based access controls limit system access to job-relevant functions, and periodic reviews ensure access remains appropriate as roles change.

Question 2

Under COSO's Internal Control—Integrated Framework, which component involves an organization's values, ethics, and operating style?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundation of internal control and encompasses the organization's tone, values, ethical standards, and management philosophy.

Question 3

A bank's BSA/AML compliance program must include all of the following EXCEPT:

Accepted Answer

Annual external audits of all loan files

Answer

The four pillars of a BSA/AML program are: internal controls, a designated compliance officer, training, and independent testing—not annual external loan file audits specifically.

Question 4

What is the primary purpose of a bank's Suspicious Activity Report (SAR) filing requirement?

Accepted Answer

To inform law enforcement of potential money laundering or criminal activity

Answer

SARs are filed with FinCEN to alert law enforcement of transactions that may involve money laundering, fraud, or other criminal activity.

Question 5

During a compliance review, an auditor finds that a branch has been waiving overdraft fees for preferred customers without documented approval. This is BEST classified as:

Accepted Answer

A fair lending and consumer compliance concern

Answer

Inconsistent fee waivers for select customers without documented criteria can indicate discriminatory practices, violating fair lending laws such as the Equal Credit Opportunity Act.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Internal Controls & Compliance 2