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
Under COSO's Internal Control framework, which component specifically addresses the policies and procedures that help ensure management directives are carried out?
Answer: Control Activities
Control Activities are the policies and procedures that ensure management directives are implemented and risks are mitigated.
A compliance officer wants to measure how quickly issues identified in audits are resolved. Which KPI is MOST appropriate?
Answer: Average days to close audit findings
Average days to close audit findings directly measures remediation speed and helps identify bottlenecks in the corrective action process.
Which audit technique involves tracing a transaction from its origin through all processing steps to the final output?
Answer: Walkthrough
A walkthrough traces a single transaction end-to-end through the process to confirm controls operate as designed.
A compliance team uses data analytics to flag 100% of transactions for review. This approach is BEST described as:
Answer: Full population testing
Full population testing examines every transaction rather than a sample, which is increasingly feasible with automated data analytics tools.
Which regulatory concept requires organizations to demonstrate that their compliance controls are working, rather than simply having them documented?
Answer: Evidence of effectiveness
Evidence of effectiveness requires organizations to show through testing and documentation that controls are actually operating as intended.
An internal audit finds a 'significant deficiency' in a compliance control. How does this differ from a 'material weakness'?
Answer: A significant deficiency is less severe and may not prevent detection of a major violation; a material weakness indicates a higher probability of a major failure
A significant deficiency is less severe than a material weakness; a material weakness represents a higher probability that a significant compliance failure will go undetected.
What is the MAIN benefit of using automated compliance monitoring tools over purely manual reviews?
Answer: They provide consistent, scalable, and timely detection of control failures across large data sets
Automated tools apply rules consistently across large volumes of data and flag exceptions faster than manual review, reducing human error and lag time.