CCM Compliance Monitoring & Auditing 3

Question 1

Under COSO's Internal Control framework, which component specifically addresses the policies and procedures that help ensure management directives are carried out?

Accepted Answer

Control Activities

Answer

Control Activities are the policies and procedures that ensure management directives are implemented and risks are mitigated.

Question 2

A compliance officer wants to measure how quickly issues identified in audits are resolved. Which KPI is MOST appropriate?

Accepted Answer

Average days to close audit findings

Answer

Average days to close audit findings directly measures remediation speed and helps identify bottlenecks in the corrective action process.

Question 3

Which audit technique involves tracing a transaction from its origin through all processing steps to the final output?

Accepted Answer

Walkthrough

Answer

A walkthrough traces a single transaction end-to-end through the process to confirm controls operate as designed.

Question 4

A compliance team uses data analytics to flag 100% of transactions for review. This approach is BEST described as:

Accepted Answer

Full population testing

Answer

Full population testing examines every transaction rather than a sample, which is increasingly feasible with automated data analytics tools.

Question 5

Which regulatory concept requires organizations to demonstrate that their compliance controls are working, rather than simply having them documented?

Accepted Answer

Evidence of effectiveness

Answer

Evidence of effectiveness requires organizations to show through testing and documentation that controls are actually operating as intended.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM Compliance Monitoring & Auditing 3