ARM 400 FINAL STUDY SHEET SOLVED
QUESTIONS FULLY CORRECT
⫸ Identifying emerging risks can provide an opportunity for risk
professionals to strengthen the organization's protections against loss.
Match the following opportunities and threats on the left with their
external environment on the right.
Physical Environment
Social Environment
Economic Environment
Legal Environment Answer: 1. XYZ Products is opening an
international office, they are 2. concerned their internal controls for data
protection will not comply with the General Data Protection Regulation
(GDPR) followed internationally.
2. The Coffee & Cream Café obtained a permit for sidewalk seating and
soon neighboring stores were doing the same.
3. ABC Products, a California-based home goods retailer, is concerned
about wildfire risk to its warehouses.
4. Malvern Realty sent out a notice to their agents that the Federal
reserve announcement caused mortgage rates to rise across the region
and to be prepared for questions from potential home buyers.
Answers: Physical Env - 3 ; Social - 2 ; Economic - 4 ; Legal -1
,⫸ Match the essential activity of the risk management process with the
correct phase and duties:
Options
compares the total level of risk determined during the risk analysis with
the established risk criteria.
developing a comprehensive list of risks that could affect the
organization's objectives.
includes evaluating how each of an organization's risk management
processes aligns with its overall objectives.
Scanning the Environment
Identifying Risk
Treating Risk Answer: Scanning the Environment
- Includes evaluating how each of an organization's risk management
processes aligns with its overall objectives.
Identifying Risk
- Developing a comprehensive list of risks that could affect the
organization's objectives.
Treating Risk
- compares the total level of risk determined during the risk analysis
with the established risk criteria.
⫸ Which one of the following best explains how the role of the internal
auditor changed with the passage of the Sarbanes-Oxley Act of 2002?
, Available answer optionsSelect only one option
A The internal auditor must adopt the attitude of an external auditor,
carefully reviewing and critiquing the finances of an organization.
B The internal auditor must be able to recognize current fraud risks as
well computer theft of intellectual property.
C The internal auditor must adopt a stakeholder orientation by
anticipating, monitoring and assessing business and operational risk.
D The internal auditor must adapt to the ever changing environment of
risk control through the use of electronic reconciliation programs.
Answer: The internal auditor must adopt a stakeholder orientation by
anticipating, monitoring and assessing business and operational risk.
⫸ Sean recently started a small consulting practice. Sean is the only
employee of the business and the sole generator of revenue. Sean is very
concerned that in the event that he becomes disabled due to an accident
or disease there will be no revenue coming into the business. Which one
of the following goals best identify Sean's concerns?
Available answer optionsSelect only one option
A Legality and profitability
B Social responsibility and earnings stability
C Economy of operations and survival
D Tolerable uncertainty and earnings stability Answer: Tolerable
uncertainty and earnings stability
⫸ Which one of the following best explains why the audience should be
known for effective enterprise risk management (ERM) communication?
Available answer optionsSelect only one option
QUESTIONS FULLY CORRECT
⫸ Identifying emerging risks can provide an opportunity for risk
professionals to strengthen the organization's protections against loss.
Match the following opportunities and threats on the left with their
external environment on the right.
Physical Environment
Social Environment
Economic Environment
Legal Environment Answer: 1. XYZ Products is opening an
international office, they are 2. concerned their internal controls for data
protection will not comply with the General Data Protection Regulation
(GDPR) followed internationally.
2. The Coffee & Cream Café obtained a permit for sidewalk seating and
soon neighboring stores were doing the same.
3. ABC Products, a California-based home goods retailer, is concerned
about wildfire risk to its warehouses.
4. Malvern Realty sent out a notice to their agents that the Federal
reserve announcement caused mortgage rates to rise across the region
and to be prepared for questions from potential home buyers.
Answers: Physical Env - 3 ; Social - 2 ; Economic - 4 ; Legal -1
,⫸ Match the essential activity of the risk management process with the
correct phase and duties:
Options
compares the total level of risk determined during the risk analysis with
the established risk criteria.
developing a comprehensive list of risks that could affect the
organization's objectives.
includes evaluating how each of an organization's risk management
processes aligns with its overall objectives.
Scanning the Environment
Identifying Risk
Treating Risk Answer: Scanning the Environment
- Includes evaluating how each of an organization's risk management
processes aligns with its overall objectives.
Identifying Risk
- Developing a comprehensive list of risks that could affect the
organization's objectives.
Treating Risk
- compares the total level of risk determined during the risk analysis
with the established risk criteria.
⫸ Which one of the following best explains how the role of the internal
auditor changed with the passage of the Sarbanes-Oxley Act of 2002?
, Available answer optionsSelect only one option
A The internal auditor must adopt the attitude of an external auditor,
carefully reviewing and critiquing the finances of an organization.
B The internal auditor must be able to recognize current fraud risks as
well computer theft of intellectual property.
C The internal auditor must adopt a stakeholder orientation by
anticipating, monitoring and assessing business and operational risk.
D The internal auditor must adapt to the ever changing environment of
risk control through the use of electronic reconciliation programs.
Answer: The internal auditor must adopt a stakeholder orientation by
anticipating, monitoring and assessing business and operational risk.
⫸ Sean recently started a small consulting practice. Sean is the only
employee of the business and the sole generator of revenue. Sean is very
concerned that in the event that he becomes disabled due to an accident
or disease there will be no revenue coming into the business. Which one
of the following goals best identify Sean's concerns?
Available answer optionsSelect only one option
A Legality and profitability
B Social responsibility and earnings stability
C Economy of operations and survival
D Tolerable uncertainty and earnings stability Answer: Tolerable
uncertainty and earnings stability
⫸ Which one of the following best explains why the audience should be
known for effective enterprise risk management (ERM) communication?
Available answer optionsSelect only one option
