CBA Internal Controls & Compliance 1

Question 1

What is the primary purpose of internal controls in a bank?

Accepted Answer

To ensure regulatory compliance and protect assets

Answer

To reduce employee workload

Answer

To improve marketing reach

Answer

To boost customer engagement

Question 2

Which of the following is a key component of an effective compliance program?

Accepted Answer

Ongoing employee training

Answer

Frequent audits only

Answer

External marketing support

Answer

Outsourcing core operations

Question 3

Segregation of duties helps prevent which of the following?

Accepted Answer

Fraud and operational errors

Answer

Increased profitability

Answer

Employee turnover

Answer

Data entry delays

Question 4

What role does internal audit play in a bank's internal control system?

Accepted Answer

Independent assessment of controls

Answer

Setting product pricing

Answer

Managing customer accounts

Answer

Approving loans

Question 5

Why is documentation important in compliance processes?

Accepted Answer

To provide proof of compliance

Answer

To reduce filing space

Answer

To meet marketing goals

Answer

To simplify client onboarding

Question 6

Which of the following best defines a compliance risk?

Accepted Answer

Violation of laws or regulations

Answer

Failure to meet customer expectations

Answer

Inability to attract investors

Answer

Lack of marketing strategy