& 9 Exam Questions and Answers
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A system or process an organization uses to achieve its operational goals,
internal and external financial reporting goals and legal and regulatory
compliance goals - ✔✔Internal Controls
The degree of importance a board of directors and management place on
their organization's internal control system and their related actions -
✔✔Control Environment
A federal statutory law governing corporate directors in the areas of
investor protection, internal controls, and penalties, both civil and criminal
- ✔✔Sarbanes-Oxley Act of 2002
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,A system of specified standards or objectives against which an
organization's management measures performance - ✔✔Management
Controls
Controls designed to prevent errors or inconsistencies - ✔✔Preventive
Controls
Controls designed to detect error or inconsistencies after they have
occurred - ✔✔Detective Controls
A systematic investigation of records, documents, systems, and operations
- ✔✔Audit
A standard defining the attributes of organizations and individuals
performing internal auditing - ✔✔Attribute Standard
A standard defining the nature of internal auditing and providing quality
criteria against which the performance of these services can be measured. -
✔✔Performance Standard
In accordance with the Three Lines of Defense Model, how does risk
management act as the second line of defense?
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, Select one:
A. Risk management provides oversight to the operational management's
assessment of risk and internal controls.
B. Risk management supports and monitors operational management's
implementation of risk management practices.
C. Risk management has authority to initiate activity demanding an
external audit should a risk be deemed imminent.
D. Risk management alerts internal audit of potential threats within a
department and works with internal audit to neutralize the threat. - ✔✔B.
Risk management supports and monitors operational management's
implementation of risk management practices.
Many banks are using technology to search for and detect cyber-security
threats locally and in the cloud. This application of technology, in which
machines learn from humans, illustrates the use of
Select one:
A. Data analytics.
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