Certified Internal Auditor Regulatory Frameworks & Compliance 2

Question 1

Under the Sarbanes-Oxley Act, which section requires management to assess and report on the effectiveness of internal controls over financial reporting?

Accepted Answer

Section 404

Answer

Section 404 of SOX requires management to assess internal control over financial reporting and requires the external auditor to attest to that assessment.

Question 2

The COSO Internal Control–Integrated Framework identifies how many components of internal control?

Accepted Answer

Five

Answer

COSO's framework includes five components: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities.

Question 3

Which regulatory body enforces compliance with the Bank Secrecy Act (BSA) requirements for financial institutions in the US?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN) is the primary bureau administering and enforcing BSA compliance requirements.

Question 4

An internal auditor discovers that a company's compliance program lacks a formal process for employees to report violations anonymously. Which framework element is most deficient?

Accepted Answer

Whistleblower Mechanisms

Answer

An anonymous reporting mechanism (whistleblower hotline) is a fundamental element of an effective compliance program under DOJ/OIG guidance.

Question 5

Under GDPR, what is the maximum timeframe within which a data breach must be reported to the supervisory authority?

Accepted Answer

72 hours

Answer

GDPR Article 33 requires notification to the supervisory authority within 72 hours of becoming aware of a personal data breach.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Regulatory Frameworks & Compliance 2