RCMS Risk Assessment & Internal Controls

Question 1

What is the purpose of risk assessment in compliance?

Accepted Answer

To identify and evaluate risks.

Answer

To ignore risks.

Answer

To increase risks.

Answer

To delay decision-making.

Question 2

Which internal control helps prevent fraud?

Accepted Answer

Segregation of duties.

Answer

Increasing workload.

Answer

Ignoring audit trails.

Answer

Delaying reports.

Question 3

What is residual risk?

Accepted Answer

Risk that remains after controls.

Answer

Risk before controls.

Answer

Risk that is ignored.

Answer

Risk that is fully eliminated.

Question 4

Which document records risk identification and evaluation?

Accepted Answer

Risk register.

Answer

Financial report.

Answer

Employee handbook.

Answer

Marketing plan.

Question 5

What is the first step in a risk assessment process?

Accepted Answer

Identifying risks.

Answer

Monitoring risks.

Answer

Reporting risks.

Answer

Ignoring risks.

Question 6

How often should internal controls be reviewed?

Accepted Answer

Regularly.

Answer

Never.

Answer

Only at year-end.

Answer

Only when a problem arises.

Question 7

What does risk mitigation involve?

Accepted Answer

Reducing risk impact.

Answer

Ignoring risks.

Answer

Increasing risk.

Answer

Accepting risk without controls.

Question 8

What role does monitoring play in internal controls?

Accepted Answer

Ensures control effectiveness.

Answer

No role.

Answer

Disables controls.

Answer

Creates risks.

Question 9

Which is an example of an internal control?

Accepted Answer

Reconciliation of accounts.

Answer

Employee training.

Answer

Ignoring risk.

Answer

Delaying audits.