ARM 400 EXAM 2026-2027 LATEST VERSION QUESTIONS
AND VERIFIED CORRECT ANSWERS JUST RELEASED
Metadata contains
A. Accounting ledger entries as well as big data.
B. Both material limitations and sampling methodology.
C. Information about data as well as rules about that data.
D. A combination of structured and unstructured data. - answer>>>C
Which one of the following defines the duties of a data steward?
A. A data steward measures data compliance.
B. A data steward is an experienced business analyst.
C. A data steward provides technological support.
D. A data steward is a project manager. - answer>>>B
Which one of the following data governance tools allows the data governance committee
to look at data relationships and interdependencies across the organization?
A. External compliance guidelines
B. Internal coding procedures
C. Enterprise data models
D. Project management programs - answer>>>C
Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called
A. Data capture.
B. Data quality.
C. Data integration.
D. Data governance. - answer>>>A
Which one of the following provides the frame of reference needed so data can be used
appropriately for analysis and decision-making?
A. Metadata
B. Data lineage
C. Data custodian
D. Data virtualization - answer>>>A
Under the General Data Protection Regulation (GDPR), a data controller's role is to
A. Represent the business aspects of data governance.
B. Define the metrics used to measure an organization's overall data quality.
C. Define how and for what purpose personal data should be processed.
,D. Manage the flow of data for the rest of the organization. - answer>>>C
Encrypting data to block its use if stolen is an example of a
A. Software-based security solution.
B. Cyber-threat inventory approach.
C. Incident response plan.
D. Hardware-based security solution. - answer>>>A
Data governance provides
A. Definitions, standards and procedures for how data is used.
B. The internal data entry processes needed to capture accounting transactions.
C. A road map that details where data is located.
D. A dynamic view of data without needing to move it between systems. - answer>>>A
In terms of data quality principles, validity is defined as
A. The accuracy of data within predefined and accepted parameters or values.
B. The process of tracing data from its source to its destination.
C. The true value of data relative to the business information being analyzed.
D. The extent that each dataset contains all elements necessary for business needs. -
answer>>>A
Encrypting data is an example of
A. An enterprise risk management program
B. A regulatory compliance program.
C. A data governance program.
D. A data security program. - answer>>>D
Cyber extortion is another name for
A. Phishing.
B. Bitcoin
C. Ransomware.
D. Social engineering. - answer>>>C
Donna's Dog Treats has been very successful in the Boston area and would like to expand
to new cities. Donna knows that she cannot make this decision based on customer advice
and blind faith. She has collected internal financial and operational data as well as
external data from reliable sources. Donna has hired an analyst to review the data
quality. The analyst is reviewing the data to see if it includes the demographics for each
target city that Donna is considering. Which one of the following data-quality principles is
being evaluated?
,A. Comprehensiveness
B. Appropriateness
C. Reasonableness
D. Validity - answer>>>A
To gain a competitive advantage, maintain profitability, and satisfy customers an
organization must
A. Be able to trust its data.
B. Pay attention to the marketplace.
C. Adopt current accounting rules.
D. Have an effective risk management program. - answer>>>A
Malware is defined as
A. Software designed to cause damage.
B. Software technology used to encrypt data.
C. A hardware-based security breach.
D. A tool for managing data security. - answer>>>A
Which one of the following is an example of a data governance tool?
A. Metadata
B. Risk Management
C. Data integration
D. External Policy - answer>>>D
A data governance committee (DGC)
A. Is cross-functional.
B. Cleanses big data.
C. Reports to risk management.
D. Is comprised of IT architects. - answer>>>A
In accordance with the Three Lines of Defense Model, how does risk management act as
the second line of defense?
A. 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.
C. Risk management provides oversight to the operational management's assessment of
risk and internal controls.
D. Risk management has authority to initiate activity demanding an external audit should
a risk be deemed imminent. - answer>>>B
, Which one of the following best describes why many purchasers require an ISO 9001
certification prior to buying a business?
A. To have an outside audit company attest to its conclusive audit.
B. To ensure that internal standards and controls are in place.
C. To transfer liability should the financial statements prove erroneous.
D. To obligate the seller to perform audits for conformance prior to the sale. -
answer>>>B
It is necessary to define functions that should be performed by internal audit rather than
the enterprise risk management (ERM) team because
A. Internal audit and risk managers share responsibilities for governance and compliance
for the organization.
B. ERM is all encompassing and if not controlled will absorb internal audit functions.
C. The Institute of Internal Auditors (IIA) guidelines are used to avoid confusion in an
organization and clarify financial compliance issues.
D. Clarification of functions helps avoid redundancy and foster a strong working
relationship. - answer>>>D
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
A. Machine learning.
B. Data analytics.
C. Artificial intelligence.
D. Risk management information systems. - answer>>>C
Which one of the following best describes how the modern approach to internal auditing
differs from the traditional approach?
A. The modern approach uses a systems-based technique, evaluating current controls
and threats to the organization, and considers the materiality of risks, but does not
consider an organization's business objectives.
B. The modern approach uses many systems-based techniques, determines activity
based on the organization's business objectives, materiality of the risk and key threats to
achieving business objectives rather than evaluating current controls.
C. The traditional approach confines itself to review of current system controls,
compliance with those controls and any potential to bypass those controls rather than
the materiality of the risk.
D. The traditional approach uses systems-based controls, determines materiality of
potential risks to the organization's achievement of its objectiv - answer>>>B
AND VERIFIED CORRECT ANSWERS JUST RELEASED
Metadata contains
A. Accounting ledger entries as well as big data.
B. Both material limitations and sampling methodology.
C. Information about data as well as rules about that data.
D. A combination of structured and unstructured data. - answer>>>C
Which one of the following defines the duties of a data steward?
A. A data steward measures data compliance.
B. A data steward is an experienced business analyst.
C. A data steward provides technological support.
D. A data steward is a project manager. - answer>>>B
Which one of the following data governance tools allows the data governance committee
to look at data relationships and interdependencies across the organization?
A. External compliance guidelines
B. Internal coding procedures
C. Enterprise data models
D. Project management programs - answer>>>C
Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called
A. Data capture.
B. Data quality.
C. Data integration.
D. Data governance. - answer>>>A
Which one of the following provides the frame of reference needed so data can be used
appropriately for analysis and decision-making?
A. Metadata
B. Data lineage
C. Data custodian
D. Data virtualization - answer>>>A
Under the General Data Protection Regulation (GDPR), a data controller's role is to
A. Represent the business aspects of data governance.
B. Define the metrics used to measure an organization's overall data quality.
C. Define how and for what purpose personal data should be processed.
,D. Manage the flow of data for the rest of the organization. - answer>>>C
Encrypting data to block its use if stolen is an example of a
A. Software-based security solution.
B. Cyber-threat inventory approach.
C. Incident response plan.
D. Hardware-based security solution. - answer>>>A
Data governance provides
A. Definitions, standards and procedures for how data is used.
B. The internal data entry processes needed to capture accounting transactions.
C. A road map that details where data is located.
D. A dynamic view of data without needing to move it between systems. - answer>>>A
In terms of data quality principles, validity is defined as
A. The accuracy of data within predefined and accepted parameters or values.
B. The process of tracing data from its source to its destination.
C. The true value of data relative to the business information being analyzed.
D. The extent that each dataset contains all elements necessary for business needs. -
answer>>>A
Encrypting data is an example of
A. An enterprise risk management program
B. A regulatory compliance program.
C. A data governance program.
D. A data security program. - answer>>>D
Cyber extortion is another name for
A. Phishing.
B. Bitcoin
C. Ransomware.
D. Social engineering. - answer>>>C
Donna's Dog Treats has been very successful in the Boston area and would like to expand
to new cities. Donna knows that she cannot make this decision based on customer advice
and blind faith. She has collected internal financial and operational data as well as
external data from reliable sources. Donna has hired an analyst to review the data
quality. The analyst is reviewing the data to see if it includes the demographics for each
target city that Donna is considering. Which one of the following data-quality principles is
being evaluated?
,A. Comprehensiveness
B. Appropriateness
C. Reasonableness
D. Validity - answer>>>A
To gain a competitive advantage, maintain profitability, and satisfy customers an
organization must
A. Be able to trust its data.
B. Pay attention to the marketplace.
C. Adopt current accounting rules.
D. Have an effective risk management program. - answer>>>A
Malware is defined as
A. Software designed to cause damage.
B. Software technology used to encrypt data.
C. A hardware-based security breach.
D. A tool for managing data security. - answer>>>A
Which one of the following is an example of a data governance tool?
A. Metadata
B. Risk Management
C. Data integration
D. External Policy - answer>>>D
A data governance committee (DGC)
A. Is cross-functional.
B. Cleanses big data.
C. Reports to risk management.
D. Is comprised of IT architects. - answer>>>A
In accordance with the Three Lines of Defense Model, how does risk management act as
the second line of defense?
A. 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.
C. Risk management provides oversight to the operational management's assessment of
risk and internal controls.
D. Risk management has authority to initiate activity demanding an external audit should
a risk be deemed imminent. - answer>>>B
, Which one of the following best describes why many purchasers require an ISO 9001
certification prior to buying a business?
A. To have an outside audit company attest to its conclusive audit.
B. To ensure that internal standards and controls are in place.
C. To transfer liability should the financial statements prove erroneous.
D. To obligate the seller to perform audits for conformance prior to the sale. -
answer>>>B
It is necessary to define functions that should be performed by internal audit rather than
the enterprise risk management (ERM) team because
A. Internal audit and risk managers share responsibilities for governance and compliance
for the organization.
B. ERM is all encompassing and if not controlled will absorb internal audit functions.
C. The Institute of Internal Auditors (IIA) guidelines are used to avoid confusion in an
organization and clarify financial compliance issues.
D. Clarification of functions helps avoid redundancy and foster a strong working
relationship. - answer>>>D
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
A. Machine learning.
B. Data analytics.
C. Artificial intelligence.
D. Risk management information systems. - answer>>>C
Which one of the following best describes how the modern approach to internal auditing
differs from the traditional approach?
A. The modern approach uses a systems-based technique, evaluating current controls
and threats to the organization, and considers the materiality of risks, but does not
consider an organization's business objectives.
B. The modern approach uses many systems-based techniques, determines activity
based on the organization's business objectives, materiality of the risk and key threats to
achieving business objectives rather than evaluating current controls.
C. The traditional approach confines itself to review of current system controls,
compliance with those controls and any potential to bypass those controls rather than
the materiality of the risk.
D. The traditional approach uses systems-based controls, determines materiality of
potential risks to the organization's achievement of its objectiv - answer>>>B
