Compliance Monitoring & Testing Flashcards
7 cards from real RCMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compliance Monitoring & Testing flashcards as text
A compliance officer discovers that a business unit has been consistently bypassing a required approval step in a process. What is the MOST appropriate immediate action?
Answer: Issue a corrective action requiring the unit to follow the process immediately
Corrective actions should be issued promptly to stop ongoing non-compliance and restore control effectiveness.
Which metric BEST measures the effectiveness of a compliance monitoring program over time?
Answer: Trend in repeat findings across successive monitoring cycles
Repeat findings indicate whether corrective actions are truly effective and whether the program is improving compliance.
In a risk-based monitoring approach, which business unit should receive the HIGHEST monitoring frequency?
Answer: A unit with high transaction volume, complex products, and prior regulatory findings
Risk-based monitoring prioritizes units with elevated inherent risk factors such as complexity, volume, and historical findings.
What is a 'look-back review' in the context of compliance monitoring?
Answer: A retrospective examination of past transactions or activities to identify violations
A look-back review examines historical transactions or conduct to detect compliance violations that may have gone undetected.
Which of the following BEST describes the purpose of a compliance testing workpaper?
Answer: To document the scope, methodology, evidence, and conclusions of a compliance test
Workpapers provide a reproducible, auditable record of how the test was conducted and what conclusions were reached.
A compliance team finds that a control is designed correctly but fails to operate as intended. This is BEST described as:
Answer: An operating effectiveness deficiency
When a control is well-designed but not functioning as intended in practice, it represents an operating effectiveness deficiency.
Which sampling technique is MOST appropriate when a compliance tester wants every transaction in a population to have an equal chance of being selected?
Answer: Simple random sampling
Simple random sampling gives every item in the population an equal probability of selection, reducing selection bias.