RCC RCC Compliance Auditing and Monitoring 2

Question 1

When developing an audit work plan, which step should occur FIRST?

Accepted Answer

Define the audit scope and objectives

Answer

Draft the audit report

Answer

Interview line employees

Answer

Test internal controls

Question 2

A compliance officer discovers that a monitoring control has been bypassed repeatedly. The FIRST action should be to:

Accepted Answer

Document the finding and escalate to appropriate management

Answer

Terminate the employees responsible

Answer

Ignore it if no regulatory fine has occurred

Answer

Wait until the annual audit to address it

Question 3

What is the role of an audit committee in compliance oversight?

Accepted Answer

To provide board-level oversight of the audit and compliance functions

Answer

To perform day-to-day transaction reviews

Answer

To replace the internal audit department

Answer

To conduct external regulatory examinations

Question 4

Which type of compliance testing involves reviewing documents and records without performing physical observations?

Accepted Answer

Desk review

Answer

Walkthrough testing

Answer

Substantive testing

Answer

Penetration testing

Question 5

A 'root cause analysis' in compliance monitoring is BEST described as:

Accepted Answer

An investigation into the underlying reason a compliance failure occurred

Answer

A financial calculation methodology

Answer

A benchmark comparison against industry peers

Answer

A process for ranking compliance risks by severity

Question 6

After a compliance audit concludes, remediation tracking PRIMARILY ensures that:

Accepted Answer

Identified findings are corrected within agreed-upon timeframes

Answer

The audit report is published publicly

Answer

The auditors are compensated fairly

Answer

No future audits are needed in that area