CIG Risk Management & Compliance 5

Question 1

When an IG identifies a 'significant deficiency' in internal controls, how does it differ from a 'material weakness'?

Accepted Answer

A significant deficiency is less severe and less likely to result in a material misstatement than a material weakness

Answer

A significant deficiency is a control deficiency important enough to merit attention but less severe than a material weakness, which poses a reasonable possibility of a material misstatement.

Question 2

Which federal watchdog body coordinates the activities of all federal inspectors general and promotes IG independence?

Accepted Answer

Council of the Inspectors General on Integrity and Efficiency (CIGIE)

Answer

CIGIE is the coordinating body that fosters collaboration among federal IGs, establishes standards, and advocates for IG independence and resources.

Question 3

A contractor discloses a potential overpayment to the agency before an audit begins. Under the Federal Acquisition Regulation, how should the agency treat this self-disclosure?

Accepted Answer

Consider it a mitigating factor and investigate promptly to determine the correct amount owed

Answer

Voluntary self-disclosure is treated as a mitigating factor under FAR and should prompt a prompt agency review to resolve the overpayment accurately.

Question 4

In risk-based auditing, how does the IG determine where to focus audit resources?

Accepted Answer

By targeting programs with the highest inherent risk and weakest controls

Answer

Risk-based auditing directs resources toward areas where the combination of high inherent risk and inadequate controls creates the greatest potential for harm or loss.

Question 5

Which compliance risk is MOST directly associated with rapidly changing regulations in a heavily regulated program area?

Accepted Answer

Regulatory change risk

Answer

Regulatory change risk arises when the pace of rule changes outstrips an organization's ability to update policies, training, and controls to stay compliant.

(CIG) Certified Inspector General Practice Test

(CIG) Certified Inspector General Practice Test

CIG Risk Management & Compliance 5