CCT Compliance Monitoring & Reporting 2

Question 1

A compliance officer discovers that a key control has been failing silently for 60 days with no alert generated. What does this scenario most likely indicate?

Accepted Answer

A gap in the monitoring system's alert thresholds or coverage

Answer

Silent control failures typically expose gaps in monitoring coverage, alert thresholds, or logging configurations that allowed the issue to go undetected.

Question 2

Under the Bank Secrecy Act (BSA), a financial institution must file a Suspicious Activity Report (SAR) within how many calendar days of detecting a suspicious transaction?

Accepted Answer

30 days

Answer

BSA regulations require SARs to be filed within 30 calendar days of the date the suspicious activity is detected.

Question 3

Which metric is MOST useful for measuring the effectiveness of a compliance monitoring program over time?

Accepted Answer

Repeat findings rate across audit cycles

Answer

A high repeat findings rate indicates that corrective actions are not resolving root causes, making it a key effectiveness indicator.

Question 4

A compliance team uses a heat map to prioritize its monitoring activities. What two dimensions does a risk heat map typically plot?

Accepted Answer

Likelihood and impact

Answer

Risk heat maps plot likelihood (probability) on one axis and impact (severity) on the other to prioritize risks visually.

Question 5

When an organization conducts a 'look-back review,' what is the primary purpose?

Accepted Answer

To retroactively examine past transactions or activities for compliance violations

Answer

A look-back review examines historical records to identify whether past activities violated regulations that may not have been flagged at the time.

(CCT) Certified Compliance Technician Practice Test

(CCT) Certified Compliance Technician Practice Test

CCT Compliance Monitoring & Reporting 2