FAC Internal Controls & Risk Assessment 1

Question 1

What is the first step in the risk management process for Finance and Accounting Certification?

Accepted Answer

Identifying potential risks and hazards

Answer

Implementing controls immediately

Answer

Writing a risk report

Answer

Transferring risk to insurance

Question 2

In Finance and Accounting Certification, what is a risk matrix used for?

Accepted Answer

Evaluating risks based on likelihood and impact

Answer

Calculating project budgets

Answer

Scheduling team meetings

Answer

Tracking employee performance

Question 3

What does risk mitigation mean in Finance and Accounting Certification practice?

Accepted Answer

Taking steps to reduce the likelihood or impact of identified risks

Answer

Eliminating all risks completely

Answer

Ignoring low-level risks

Answer

Accepting all risks without action

Question 4

Which risk response strategy involves transferring risk to a third party in Finance and Accounting Certification?

Accepted Answer

Transfer (e.g., insurance)

Answer

Avoidance

Answer

Mitigation

Answer

Acceptance

Question 5

What is a risk register in Finance and Accounting Certification practice?

Accepted Answer

A documented list of identified risks with their analysis and response plans

Answer

A sign-in sheet for safety meetings

Answer

A financial ledger

Answer

An employee directory

Question 6

When should risk assessments be updated in Finance and Accounting Certification?

Accepted Answer

Regularly and whenever significant changes occur

Answer

Only at the beginning of a project

Answer

Only after an incident happens

Answer

Once per year at annual review