GRC Internal Controls & Audit Processes 2

Question 1

Which control type is designed to detect errors or irregularities AFTER they have occurred?

Accepted Answer

Detective control

Answer

Detective controls identify problems after they occur, such as reconciliations and audits.

Question 2

The COSO Internal Control framework consists of how many components?

Accepted Answer

5

Answer

COSO identifies five components: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring.

Question 3

An audit committee is PRIMARILY responsible for:

Accepted Answer

Overseeing the external and internal audit functions

Answer

The audit committee provides independent oversight of financial reporting and both internal and external audit activities.

Question 4

Which of the following best describes 'tone at the top'?

Accepted Answer

Management's commitment to ethics and internal controls that sets the cultural tone

Answer

Tone at the top refers to senior leadership's demonstrated commitment to ethical behavior and robust internal controls.

Question 5

What does 'control self-assessment' (CSA) involve?

Accepted Answer

Management and staff evaluating the effectiveness of their own controls

Answer

CSA is a technique where operational staff and management assess control effectiveness within their own units.

(GRC) Governance, Risk, and Compliance Certification Practice Test