RCMS Risk Assessment & Internal Controls 2

Question 1

Which risk assessment methodology assigns numerical probability values and financial impact estimates to risks?

Accepted Answer

Quantitative risk assessment

Answer

Quantitative risk assessment uses numerical probabilities and financial figures to calculate expected loss values for each risk.

Question 2

A compliance officer discovers that a control designed to prevent duplicate payments has never been tested. This represents a failure in which control activity?

Accepted Answer

Control monitoring

Answer

Control monitoring requires periodic testing and evaluation to confirm that controls are operating effectively over time.

Question 3

Under COSO's Internal Control framework, which component addresses the organization's values, ethics, and commitment to competence?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundation of COSO's framework and encompasses the tone set by leadership, ethics, and organizational culture.

Question 4

An organization implements a four-eyes principle requiring two managers to approve large wire transfers. This is an example of which type of control?

Accepted Answer

Preventive control

Answer

A dual-approval requirement prevents unauthorized transactions from occurring and is therefore a preventive control.

Question 5

Which concept describes the risk that remains after management has applied controls and mitigation measures?

Accepted Answer

Residual risk

Answer

Residual risk is what remains after all risk responses and controls have been applied to reduce inherent risk.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS Risk Assessment & Internal Controls 2