ARM 400 Simulated Exam | Questions with 100%
Correct Answers | Verified | Latest Update
2026/2027
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Terms in this set (50)
The Committee of Sponsoring considers management's efforts to identify and
Organizations of the Treadway analyze risks relevant to achieving predetermined
Commission (COSO) describes objectives.
internal control as consisting of five
essential components, one of which
is risk assessment. This component
One of the strategic objectives for High customer retention
Cromley Insurance Group is
customer satisfaction. Which one of
the following is a critical success
factor (CSF) that would help refine
this strategic objective?
Which one of the following is the It can only look backward.
inherent weakness of root cause
analysis (RCA)?
One corporate governance issue is Conduct regular meetings of outside directors
accountability of directors. One without management being present.
method to increase accountability of
directors is to
, Emerging technologies such as Detection of fraud and inefficient practices in real
artificial intelligence and machine time.
learning are being applied by some
businesses as part of their internal
audit and control process. A key
benefit of such applications is
A municipal water plant installed Mechanical sensors.
water flow sensors and water
pressure sensors on the water pipes
leaving the plant. The sensors make
sure water is flowing properly and
that there are no leaks or clogs
which could produce a loss. These
types of sensors are
In an effort to grow its personal lines Correlation
book, an insurer decides to offer
discounts on homeowners and
personal auto insurance to the
employees of its largest business
lines account. Which one of the
following risk measures is most likely
to increase as a result of this
marketing decision?
When comparing principles-based Principles-based regulation responds more quickly
regulation with rules-based to a changing environment.
regulation, which one of the
following statements is correct?
Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (50)
The Committee of Sponsoring considers management's efforts to identify and
Organizations of the Treadway analyze risks relevant to achieving predetermined
Commission (COSO) describes objectives.
internal control as consisting of five
essential components, one of which
is risk assessment. This component
One of the strategic objectives for High customer retention
Cromley Insurance Group is
customer satisfaction. Which one of
the following is a critical success
factor (CSF) that would help refine
this strategic objective?
Which one of the following is the It can only look backward.
inherent weakness of root cause
analysis (RCA)?
One corporate governance issue is Conduct regular meetings of outside directors
accountability of directors. One without management being present.
method to increase accountability of
directors is to
, Emerging technologies such as Detection of fraud and inefficient practices in real
artificial intelligence and machine time.
learning are being applied by some
businesses as part of their internal
audit and control process. A key
benefit of such applications is
A municipal water plant installed Mechanical sensors.
water flow sensors and water
pressure sensors on the water pipes
leaving the plant. The sensors make
sure water is flowing properly and
that there are no leaks or clogs
which could produce a loss. These
types of sensors are
In an effort to grow its personal lines Correlation
book, an insurer decides to offer
discounts on homeowners and
personal auto insurance to the
employees of its largest business
lines account. Which one of the
following risk measures is most likely
to increase as a result of this
marketing decision?
When comparing principles-based Principles-based regulation responds more quickly
regulation with rules-based to a changing environment.
regulation, which one of the
following statements is correct?
