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
When a compliance test reveals a gap between policy requirements and actual employee behavior, the root cause analysis should FIRST examine:
Answer: Whether the policy was communicated and understood by employees
Gaps between policy and behavior often stem from inadequate communication or training, making that the logical first root cause to investigate.
A compliance officer is tasked with validating a third-party vendor's compliance controls. Which approach is MOST appropriate?
Answer: Conduct an on-site review or request detailed evidence of control operation
Effective third-party oversight requires obtaining and reviewing evidence of control operation, not just relying on self-reported information.
Which of the following is a PRIMARY output of a compliance monitoring cycle?
Answer: A monitoring report summarizing findings, risk ratings, and remediation recommendations
The primary deliverable of a monitoring cycle is the monitoring report, which communicates findings and drives corrective action.
A compliance test finds that 100% of sampled transactions complied with policy requirements. The tester should:
Answer: Document the satisfactory result but maintain the area in the monitoring universe for future cycles
A clean result should be documented and the area retained in the monitoring universe, as risk conditions can change over time.
Which regulation MOST directly governs requirements for compliance monitoring programs at US bank holding companies?
Answer: 12 CFR Part 30 / OCC Heightened Standards and Federal Reserve SR 08-8
OCC Heightened Standards (12 CFR Part 30) and Federal Reserve SR 08-8 set supervisory expectations for compliance risk management programs at large banking organizations.
In compliance monitoring, a 'hot spot' refers to:
Answer: A business area, process, or product line identified as having elevated compliance risk requiring focused attention
Hot spots are areas of concentrated compliance risk that warrant additional monitoring resources and attention.
Which of the following BEST describes 'issue aging' in a compliance management system?
Answer: Monitoring how long corrective action items remain open past their target remediation dates
Issue aging tracks overdue remediation items, helping management identify unresolved compliance risks that need escalation.