Compliance Monitoring & Auditing Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compliance Monitoring & Auditing flashcards as text
During a compliance audit, an auditor discovers that an employee bypassed a control but the outcome was still compliant. What is the BEST course of action?
Answer: Document a control deficiency and recommend remediation regardless of outcome
Control bypasses represent process risks and must be documented even if the specific instance produced a compliant outcome.
Which sampling method selects every nth item from a population and is commonly used in compliance testing?
Answer: Systematic sampling
Systematic sampling selects every nth item and is widely used because it is simple and spreads coverage across the population.
What does a 'heat map' in a compliance monitoring dashboard primarily communicate?
Answer: Concentration and severity of compliance risks across the organization
Compliance heat maps visually represent risk concentration and severity, enabling management to prioritize remediation efforts.
A continuous monitoring program differs from periodic auditing primarily because it:
Answer: Provides near-real-time detection of compliance gaps
Continuous monitoring uses automated tools to detect issues in near real time, unlike periodic audits that review historical data at set intervals.
When setting a compliance monitoring scope, which factor is MOST important to consider first?
Answer: Risk level and regulatory significance of the area
Risk-based scoping prioritizes areas with the highest regulatory significance and potential impact, ensuring resources are directed where they matter most.
Which of the following BEST describes a 'substantive test' in a compliance audit?
Answer: Testing transactions and balances to detect material misstatements or violations
Substantive tests examine actual transactions and records to verify that violations or misstatements have not occurred.
What is the primary purpose of issuing a 'management response' in a compliance audit report?
Answer: To formally acknowledge findings and document planned corrective actions with owners and timelines
Management responses document accountability by assigning owners, timelines, and specific corrective actions for each audit finding.