CPA Risk Assessment & Underwriting

Question 1

What is the first step in CPA risk assessment?

Accepted Answer

Identifying potential hazards and threats

Answer

Purchasing insurance

Answer

Assigning blame

Answer

Ignoring minor risks

Question 2

What is the hierarchy of controls in CPA risk management?

Accepted Answer

Elimination, substitution, engineering, administrative, then PPE

Answer

PPE first, then administrative

Answer

Insurance, training, documentation

Answer

Assessment, planning, implementation

Question 3

What is a risk matrix used for in CPA practice?

Accepted Answer

Evaluating risks by plotting likelihood against impact severity

Answer

Creating task schedules

Answer

Mapping facility layouts

Answer

Tracking attendance

Question 4

What does residual risk mean in CPA practice?

Accepted Answer

Risk remaining after all controls are implemented

Answer

Initial risk before assessment

Answer

Risk affecting waste materials

Answer

Budget overrun risk

Question 5

Why is regular review important in CPA risk management?

Accepted Answer

Conditions change and new risks emerge requiring updates

Answer

Only needed after incidents

Answer

Prohibited more than annually

Answer

Assessments stay valid forever

Question 6

What is a near-miss report in CPA practice?

Accepted Answer

Documentation of an event that could have caused harm but did not

Answer

A project near deadline

Answer

An employee near target

Answer

A near break-even report