CIG Governance & Internal Controls 2

Question 1

Under the COSO framework, which component addresses an organization's ethical values and commitment to competence?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundational COSO component that sets the tone through ethical values, commitment to competence, and board oversight.

Question 2

An Inspector General discovers that a federal agency's control self-assessment (CSA) process consistently rates all controls as 'effective' without supporting evidence. This situation MOST likely indicates:

Accepted Answer

Tone-at-the-top deficiency in the control environment

Answer

Unsupported self-assessments that uniformly show positive results suggest leadership is not genuinely committed to honest control evaluation, reflecting a tone-at-the-top problem.

Question 3

Which governance principle requires that no single individual controls all phases of a transaction from initiation to completion?

Accepted Answer

Separation of duties

Answer

Separation of duties divides key functions so no one person can initiate, approve, execute, and record a transaction, reducing fraud and error risk.

Question 4

The Government Accountability Office (GAO) Standards for Internal Control in the Federal Government (Green Book) is organized around how many principles?

Accepted Answer

17

Answer

The GAO Green Book contains 17 principles organized under the five internal control components aligned with the COSO framework.

Question 5

A material weakness in internal control differs from a significant deficiency primarily because a material weakness:

Accepted Answer

Represents a reasonable possibility of a material misstatement going undetected

Answer

A material weakness is a deficiency where there is a reasonable possibility that a material misstatement will not be prevented or detected on a timely basis.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Governance & Internal Controls 2