CPA BAR Exam Correct Questions
And Answers
What does ERM stand for and what is its purpose? Correct Answers ERM = Enterprise
Risk Management
Purpose: To create value for stakeholders while balancing risk
What is CPER? Correct Answers The four components of value which are affected by
management decisions:
C = Creation of value
P = Preservation of value
E = Erosion of value
R = Realization of value by stakeholders
What is a company "mission"? Correct Answers A set of business objectives which
create value
What is a company "vision"? Correct Answers The aspiration or goals set forth by a
company which determines what type of business they will run
What are "core values" of a company? Correct Answers A set of ideas, ethics, and
beliefs which affect the behavior of the company and thus determine company culture
What is the 5 letter acronym of the sequential process of good enterprise risk
management? Correct Answers GOPRO
What is the G in GOPRO? Correct Answers Governance and culture
What is the first O in GOPRO? Correct Answers Objective setting and strategy
What is the P in GOPRO? Correct Answers Performance
What is the R in GOPRO? Correct Answers Review and revise
What is the second O in GOPRO? Correct Answers Ongoing information,
communication, and reporting
What is the acronym which describes the execution of Governance and Culture?
Correct Answers DOVES
What does the D in DOVES stand for? Correct Answers Desired culture
,What does the O in DOVES stand for? Correct Answers Oversight by the board
What does the V in DOVES stand for? Correct Answers Value commitment (are the
core values actually demonstrated)
What does the E in DOVES stand for? Correct Answers Employees are of high quality,
developed, and retained
What does the S in DOVES stand for? Correct Answers Structure of operations is
clearly defined
What is the acronym which describes the execution of Objective-setting and Strategy?
Correct Answers SOAR
What does the S in SOAR stand for? Correct Answers Strategies, including alternatives
What does the O in SOAR stand for? Correct Answers Objectives for business are
established
What does the A in SOAR stand for? Correct Answers Analyze business context
What does the R in SOAR stand for? Correct Answers Risk appetite is defined by
management
What is the acronym which describes how to execute on Performance in the GOPRO
model? Correct Answers VAPIR
What does the V stand for in VAPIR? Correct Answers View your complete portfolio
when addressing risk
What does the A stand for in VAPIR? Correct Answers Assess the severity of the risk
(impact and frequnecy)
What does the P stand for in VAPIR? Correct Answers Prioritize risk
What does the I stand for in VAPIR? Correct Answers Identify risks
What does the R stand for in VAPIR? Correct Answers Respond to risk using PARTS
What is the acronym used to respond to risk? Correct Answers PARTS
In the context of risk response, what does the P stand for in PARTS? Correct Answers
Pursue
, In the context of risk response, what does the A stand for in PARTS? Correct Answers
Avoid
In the context of risk response, what does the R stand for in PARTS? Correct Answers
Reduce
In the context of risk response, what does the T stand for in PARTS? Correct Answers
Transfer (buy insurance)
In the context of risk response, what does the S stand for in PARTS? Correct Answers
Self-insure (accept the risk)
What is the acronym which describes how to execute on Review & Revise in the
GOPRO model? Correct Answers SIR
What does the S stand for in SIR? Correct Answers Substantial changes are assessed
What does the I stand for in SIR? Correct Answers Improvement in ERM is pursued
What does the R stand for in SIR? Correct Answers Reviews risk and performance
What is the acronym which describes how to execute on On-going Information,
Communication, and Reporting in the GOPRO model? Correct Answers TIP
What does T stand for in TIP? Correct Answers Technology and information are
leveraged
What does I stand for in TIP? Correct Answers Information related to risk is
communicated
What does P stand for in TIP? Correct Answers Performance, risk and culture are
reported
Prime Costs are... Correct Answers Direct Labor + Direct Materials
Conversion Costs are... Correct Answers Direct Labor + Applied Overhead
What is a Fishbone diagram used for? Correct Answers A fishbone diagram enables us
to identify what caused the defect
What is a Pareto chart used for? Correct Answers A Pareto chart is also know as a
"Frequency Chart" and shows us at what frequency each defect or error is occurring
What is a control chart used for? Correct Answers A control chart helps management
identify what batches are having defect rates outside of the "goal posts" or acceptable
range.
And Answers
What does ERM stand for and what is its purpose? Correct Answers ERM = Enterprise
Risk Management
Purpose: To create value for stakeholders while balancing risk
What is CPER? Correct Answers The four components of value which are affected by
management decisions:
C = Creation of value
P = Preservation of value
E = Erosion of value
R = Realization of value by stakeholders
What is a company "mission"? Correct Answers A set of business objectives which
create value
What is a company "vision"? Correct Answers The aspiration or goals set forth by a
company which determines what type of business they will run
What are "core values" of a company? Correct Answers A set of ideas, ethics, and
beliefs which affect the behavior of the company and thus determine company culture
What is the 5 letter acronym of the sequential process of good enterprise risk
management? Correct Answers GOPRO
What is the G in GOPRO? Correct Answers Governance and culture
What is the first O in GOPRO? Correct Answers Objective setting and strategy
What is the P in GOPRO? Correct Answers Performance
What is the R in GOPRO? Correct Answers Review and revise
What is the second O in GOPRO? Correct Answers Ongoing information,
communication, and reporting
What is the acronym which describes the execution of Governance and Culture?
Correct Answers DOVES
What does the D in DOVES stand for? Correct Answers Desired culture
,What does the O in DOVES stand for? Correct Answers Oversight by the board
What does the V in DOVES stand for? Correct Answers Value commitment (are the
core values actually demonstrated)
What does the E in DOVES stand for? Correct Answers Employees are of high quality,
developed, and retained
What does the S in DOVES stand for? Correct Answers Structure of operations is
clearly defined
What is the acronym which describes the execution of Objective-setting and Strategy?
Correct Answers SOAR
What does the S in SOAR stand for? Correct Answers Strategies, including alternatives
What does the O in SOAR stand for? Correct Answers Objectives for business are
established
What does the A in SOAR stand for? Correct Answers Analyze business context
What does the R in SOAR stand for? Correct Answers Risk appetite is defined by
management
What is the acronym which describes how to execute on Performance in the GOPRO
model? Correct Answers VAPIR
What does the V stand for in VAPIR? Correct Answers View your complete portfolio
when addressing risk
What does the A stand for in VAPIR? Correct Answers Assess the severity of the risk
(impact and frequnecy)
What does the P stand for in VAPIR? Correct Answers Prioritize risk
What does the I stand for in VAPIR? Correct Answers Identify risks
What does the R stand for in VAPIR? Correct Answers Respond to risk using PARTS
What is the acronym used to respond to risk? Correct Answers PARTS
In the context of risk response, what does the P stand for in PARTS? Correct Answers
Pursue
, In the context of risk response, what does the A stand for in PARTS? Correct Answers
Avoid
In the context of risk response, what does the R stand for in PARTS? Correct Answers
Reduce
In the context of risk response, what does the T stand for in PARTS? Correct Answers
Transfer (buy insurance)
In the context of risk response, what does the S stand for in PARTS? Correct Answers
Self-insure (accept the risk)
What is the acronym which describes how to execute on Review & Revise in the
GOPRO model? Correct Answers SIR
What does the S stand for in SIR? Correct Answers Substantial changes are assessed
What does the I stand for in SIR? Correct Answers Improvement in ERM is pursued
What does the R stand for in SIR? Correct Answers Reviews risk and performance
What is the acronym which describes how to execute on On-going Information,
Communication, and Reporting in the GOPRO model? Correct Answers TIP
What does T stand for in TIP? Correct Answers Technology and information are
leveraged
What does I stand for in TIP? Correct Answers Information related to risk is
communicated
What does P stand for in TIP? Correct Answers Performance, risk and culture are
reported
Prime Costs are... Correct Answers Direct Labor + Direct Materials
Conversion Costs are... Correct Answers Direct Labor + Applied Overhead
What is a Fishbone diagram used for? Correct Answers A fishbone diagram enables us
to identify what caused the defect
What is a Pareto chart used for? Correct Answers A Pareto chart is also know as a
"Frequency Chart" and shows us at what frequency each defect or error is occurring
What is a control chart used for? Correct Answers A control chart helps management
identify what batches are having defect rates outside of the "goal posts" or acceptable
range.
