ARM 400 Exam Practice Questions and Answers 100 Solved-21

B. Cleanses big data. C. Reports to risk management. D. Is comprised of IT architects. - 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 aut - 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. - 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 (ILA) guidelines are used to avoid confusion in an organization and clarify financial compliance issues. D. Clarification o - 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. - 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