CMC Quality & Compliance Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 CMC Quality & Compliance flashcards as text
A CMC advising on enterprise risk management (ERM) recommends using the COSO ERM framework. What does COSO stand for?
Answer: Committee of Sponsoring Organizations of the Treadway Commission
COSO stands for the Committee of Sponsoring Organizations of the Treadway Commission, which developed widely adopted frameworks for internal control and enterprise risk management.
In quality management, 'cost of poor quality' (COPQ) includes which of the following categories?
Answer: All four: prevention, appraisal, internal failure, and external failure costs
COPQ is typically divided into four categories: prevention costs, appraisal costs, internal failure costs, and external failure costs.
A CMC's client in the financial services sector is subject to BSA/AML compliance requirements. BSA stands for:
Answer: Bank Secrecy Act
The Bank Secrecy Act (BSA) is a US federal law requiring financial institutions to assist government agencies in detecting and preventing money laundering.
Which of the following BEST describes a 'whistleblower policy' within a compliance program?
Answer: A policy providing safe channels for reporting suspected misconduct without fear of retaliation
A whistleblower policy establishes protected, confidential reporting mechanisms so employees can raise compliance concerns without fear of retaliation.
When evaluating a client's compliance with the Foreign Corrupt Practices Act (FCPA), a CMC should focus primarily on controls around:
Answer: Payments to foreign government officials and third-party due diligence
The FCPA prohibits US companies from bribing foreign officials; key controls involve payment approval processes and due diligence on agents and intermediaries.
A CMC applies benchmarking as a quality improvement tool. External benchmarking specifically involves:
Answer: Comparing the organization's processes or performance against external organizations or industry best practices
External benchmarking compares an organization's performance metrics or practices against those of other companies or industry standards to identify improvement opportunities.
Under professional consulting standards, what should a CMC do when they lack sufficient expertise in a specific technical area critical to an engagement?
Answer: Disclose the limitation and bring in a qualified subject matter expert or sub-consultant
CMC professional standards require transparency about competency limitations and mandate engaging qualified experts when a knowledge gap exists to ensure quality outcomes.