CIG Risk Management & Compliance 3

Question 1

Which federal statute requires agency heads to report annually on the effectiveness of internal controls and financial systems?

Accepted Answer

Federal Managers Financial Integrity Act (FMFIA)

Answer

FMFIA requires agency heads to evaluate and report on the adequacy of internal controls and financial management systems each year.

Question 2

A heat map used in risk management typically plots risks on axes representing which two dimensions?

Accepted Answer

Likelihood and impact

Answer

A risk heat map visualizes risks by plotting the probability (likelihood) of occurrence against the potential consequence (impact), helping prioritize mitigation efforts.

Question 3

Under the False Claims Act, what is the role of the qui tam provision?

Accepted Answer

It allows private citizens to file suits on behalf of the government and share in any recovery

Answer

The qui tam provision of the False Claims Act (31 U.S.C. § 3730) enables whistleblowers (relators) to sue on the government's behalf and receive a share of recovered funds.

Question 4

What is a 'tone at the top' indicator that an inspector general might review to assess an organization's compliance culture?

Accepted Answer

Whether senior leaders publicly endorse ethics policies and hold violators accountable

Answer

Tone at the top is demonstrated by leadership's visible commitment to ethics—including communications, accountability actions, and consistency between stated values and behavior.

Question 5

Which risk response strategy involves accepting the potential consequences of a risk without taking action to reduce it?

Accepted Answer

Risk acceptance

Answer

Risk acceptance means management consciously decides not to act on a risk, either because the cost of control exceeds the benefit or the risk falls within tolerance.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Risk Management & Compliance 3