CIG Risk Management & Compliance 4

Question 1

Which element is NOT typically included in a risk register?

Accepted Answer

Auditor's personal opinion on management integrity

Answer

A risk register documents factual risk data including descriptions, owners, ratings, and response plans—personal opinions about individuals are not appropriate entries.

Question 2

Which principle holds that internal audit's effectiveness depends on its independence from the activities it reviews?

Accepted Answer

Organizational independence

Answer

Organizational independence requires that internal audit report to a level that enables it to fulfill responsibilities without interference from management whose activities it audits.

Question 3

A grant recipient fails to maintain records for the required retention period. Under federal compliance standards, what type of finding is this?

Accepted Answer

Noncompliance with requirements

Answer

Failure to maintain required records constitutes noncompliance with federal award requirements, regardless of whether it caused a monetary loss.

Question 4

What is the purpose of a 'control self-assessment' (CSA) in a compliance program?

Accepted Answer

To engage process owners in evaluating the effectiveness of their own controls

Answer

CSA is a technique where the people who own and operate processes assess their own controls, promoting ownership and often surfacing risks that external auditors miss.

Question 5

Under the Standards for Internal Audit (IIA Standards), due professional care requires internal auditors to consider which factor?

Accepted Answer

The likelihood of significant errors, fraud, or noncompliance

Answer

Due professional care requires auditors to consider the probability of significant errors, irregularities, or noncompliance when planning and executing audit work.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Risk Management & Compliance 4