Certified Internal Auditor Regulatory Frameworks & Compliance 3

Question 1

A company subject to HIPAA discovers that a business associate transmitted protected health information without authorization. Who bears primary regulatory responsibility?

Accepted Answer

Both the covered entity and the business associate

Answer

Under the HIPAA Omnibus Rule, both covered entities and their business associates can be held directly liable for HIPAA violations.

Question 2

Which of the following best describes the purpose of a compliance risk assessment?

Accepted Answer

To identify and prioritize areas where regulatory violations are most likely

Answer

A compliance risk assessment systematically identifies, evaluates, and prioritizes the organization's exposure to regulatory and legal violations.

Question 3

Under the Dodd-Frank Act, which agency was created to oversee consumer financial protection?

Accepted Answer

CFPB

Answer

The Consumer Financial Protection Bureau (CFPB) was established by Dodd-Frank to regulate consumer financial products and enforce consumer protection laws.

Question 4

An internal auditor is evaluating a compliance training program. Which metric is most useful for assessing training effectiveness?

Accepted Answer

Pre- and post-training knowledge assessment scores

Answer

Pre- and post-training assessments measure actual knowledge gained, making them the most direct indicator of training effectiveness.

Question 5

The three lines of defense model assigns compliance monitoring as a primary responsibility of which line?

Accepted Answer

Second line (compliance and risk functions)

Answer

The second line of defense includes compliance and risk management functions responsible for establishing policies and monitoring adherence.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Regulatory Frameworks & Compliance 3