CCM Risk and Internal Controls 3

Question 1

A compliance officer is reviewing an organization's risk register. Which element is LEAST likely to be included in a typical risk register entry?

Accepted Answer

Employee compensation details

Answer

A risk register typically includes risk description, likelihood, impact, owner, and mitigation actions — not employee compensation, which is unrelated to risk documentation.

Question 2

Which internal control objective focuses on ensuring that financial and operational reports are accurate and complete?

Accepted Answer

Reporting

Answer

Under the COSO framework, the Reporting objective specifically addresses the reliability and accuracy of both internal and external financial and non-financial reporting.

Question 3

An organization implements a control requiring two separate individuals to authorize any wire transfer over $50,000. This is an example of:

Accepted Answer

Dual control

Answer

Dual control requires two or more authorized individuals to be present or to approve a transaction simultaneously, preventing unilateral action on high-risk activities.

Question 4

In the context of risk treatment, 'risk transfer' is best exemplified by:

Accepted Answer

Purchasing cybersecurity insurance

Answer

Risk transfer shifts the financial consequences of a risk to a third party, most commonly through insurance policies or contractual arrangements.

Question 5

Which approach to internal control testing examines a sample of transactions from start to finish to verify all controls operated effectively throughout?

Accepted Answer

End-to-end testing

Answer

End-to-end testing traces transactions from initiation through completion, verifying that all controls in the process chain functioned as intended.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM Risk and Internal Controls 3