CIA Exam: Part 1 Questions and
Answers 100% Verified
AcceptableMRiskM-
MAnswerMAMtypeMofMriskMthatMrevolvesMaroundMtheMbusinessMimpactMthatMwouldM
beMexperiencedMifMcertainMrisksMbecameMrealized.MTheMlossMisMdeemedMtoMbeMacce
ptable;MnoMadditionalMcontrolsMareMwarranted.
AcceptableMRiskMLevelM-
MAnswerMAMriskMlevelMderivedMfromManMorganizations'MlegalMandMregulatoryMcomplia
nceMresponsibilities,MitsMthreatMprofile,MandMitsMbusinessMdriversMandMimpacts.
AdequateMControlM-
MAnswerMAMlevelMofMcontrolMthatMisMpresentMifMmanagementMhasMplannedMandMor
ganizedM(designed)MinMaMmannerMthatMprovidesMreasonableMassuranceMthatMtheMorga
nization'sMriskMhaveMbeenMmanagedMeffectivelyMandMthatMtheMorganization'sMgoalsMan
dMobjectivesMwillMbeMachievedMefficientlyMandMeconomically.
AuditMRiskM-
MAnswerMTheMriskMthatMinternalMauditorsMmayMarriveMatMtheMwrongMconclusionsMan
dMopinionsMofMtheMworkMthatMtheyMhaveMundertaken.
ComplianceM-
MAnswerMConformityMandMadherenceMtoMpolicies,Mplans,Mprocedures,Mlaws,Mregulations
,Mcontracts,MorMotherMrequirements.
ControlMDeficiencyM-
MAnswerMAMconditionMthatMwarrantsMattentionMasMaMpotentialMorMrealMshortcoming
MthatMleavesManMorganizationMexcessivelyMatMrisk.
ControlMEnvironmentM-
MAnswerMTheMattitudeMandMactionsMofMtheMboardMandMmanagementMregardingMthe
MsignificanceMofMcontrolMwithinMtheMorganization.MTheMcontrolMenvironmentMprovides
MtheMdisciplineMandMstructureMforMtheMachievementMofMtheMprimaryMobjectivesMofMt
heMsystemMofMinternalMcontrol.
ElementsMofMtheMControlMEnvironmentM-MAnswerM1)MIntegrityMandMethicalMvalues
, 2)MManagement'sMphilosophyMandMoperatingMstyle
3)MOrganizationalMstructure
4)MAssignmentMofMauthorityMandMresponsibility
5)MHumanMResourceMpoliciesMandMpractices
6)MCompetenceMofMpersonnel
ControlMProcessM-
MAnswerMTheMpolicies,Mprocedures,MandMactivitiesMthatMareMpartMofMaMcontrolMfram
ework,MdesignedMtoMensureMthatMrisksMareMcontainedMwithinMtheMriskMtolerancesMest
ablishedMbyMtheMriskMmanagementMprocess.
ControlMRiskM-
MAnswerMTheMpotentialMthatMcontrolMactivitiesMwillMfailMtoMreduceMcontrollableMrisk
MtoManMacceptableMlevel.
EnterpriseMriskMmanagementM(ERM)M-
MAnswerMAMstructured,Mconsistent,MandMcontinuousMprocessMacrossMtheMwholeMorgani
zationMforMidentifying,Massessing,MdecidingMonMresponsesMto,MandMreportingMonMoppo
rtunitiesMandMthreatsMthatMaffectMtheMachievementMofMitsMobjectives.
EventM-
MAnswerMAnMincidentMorMoccurrenceMresultingMfromMinternalMorMexternalMsourcesMth
atMaffectsMtheMimplementationMofMstrategyMorMachievementMofMobjectives.
ImpactM-MAnswerMTheMresult,Meffect,MorMconsequencesMofManMevent.
InherentMLimitationsM-
MAnswerMLimitationsMofMriskMmanagement,Mcontrol,MandMgovernanceMrelatedMtoMhum
anMjudgement,MresourceMlimitations,MandMtheMneedMtoMbalanceMtheMcostsMofMcontro
lsMinMrelationMtoMexpectedMbenefits;MconsidersMtheMrealityMofMbreakdownsMoccurring
MandMtheMpossibilityMofMmanagementMoverrideMandMcollusion.
InherentMRiskM(orMAbsoluteMRisk)M-
MAnswerMTheMriskMderivedMfromMtheMenvironmentMwithoutMtheMmitigatingMeffectsMo
fMinternalMcontrols
Answers 100% Verified
AcceptableMRiskM-
MAnswerMAMtypeMofMriskMthatMrevolvesMaroundMtheMbusinessMimpactMthatMwouldM
beMexperiencedMifMcertainMrisksMbecameMrealized.MTheMlossMisMdeemedMtoMbeMacce
ptable;MnoMadditionalMcontrolsMareMwarranted.
AcceptableMRiskMLevelM-
MAnswerMAMriskMlevelMderivedMfromManMorganizations'MlegalMandMregulatoryMcomplia
nceMresponsibilities,MitsMthreatMprofile,MandMitsMbusinessMdriversMandMimpacts.
AdequateMControlM-
MAnswerMAMlevelMofMcontrolMthatMisMpresentMifMmanagementMhasMplannedMandMor
ganizedM(designed)MinMaMmannerMthatMprovidesMreasonableMassuranceMthatMtheMorga
nization'sMriskMhaveMbeenMmanagedMeffectivelyMandMthatMtheMorganization'sMgoalsMan
dMobjectivesMwillMbeMachievedMefficientlyMandMeconomically.
AuditMRiskM-
MAnswerMTheMriskMthatMinternalMauditorsMmayMarriveMatMtheMwrongMconclusionsMan
dMopinionsMofMtheMworkMthatMtheyMhaveMundertaken.
ComplianceM-
MAnswerMConformityMandMadherenceMtoMpolicies,Mplans,Mprocedures,Mlaws,Mregulations
,Mcontracts,MorMotherMrequirements.
ControlMDeficiencyM-
MAnswerMAMconditionMthatMwarrantsMattentionMasMaMpotentialMorMrealMshortcoming
MthatMleavesManMorganizationMexcessivelyMatMrisk.
ControlMEnvironmentM-
MAnswerMTheMattitudeMandMactionsMofMtheMboardMandMmanagementMregardingMthe
MsignificanceMofMcontrolMwithinMtheMorganization.MTheMcontrolMenvironmentMprovides
MtheMdisciplineMandMstructureMforMtheMachievementMofMtheMprimaryMobjectivesMofMt
heMsystemMofMinternalMcontrol.
ElementsMofMtheMControlMEnvironmentM-MAnswerM1)MIntegrityMandMethicalMvalues
, 2)MManagement'sMphilosophyMandMoperatingMstyle
3)MOrganizationalMstructure
4)MAssignmentMofMauthorityMandMresponsibility
5)MHumanMResourceMpoliciesMandMpractices
6)MCompetenceMofMpersonnel
ControlMProcessM-
MAnswerMTheMpolicies,Mprocedures,MandMactivitiesMthatMareMpartMofMaMcontrolMfram
ework,MdesignedMtoMensureMthatMrisksMareMcontainedMwithinMtheMriskMtolerancesMest
ablishedMbyMtheMriskMmanagementMprocess.
ControlMRiskM-
MAnswerMTheMpotentialMthatMcontrolMactivitiesMwillMfailMtoMreduceMcontrollableMrisk
MtoManMacceptableMlevel.
EnterpriseMriskMmanagementM(ERM)M-
MAnswerMAMstructured,Mconsistent,MandMcontinuousMprocessMacrossMtheMwholeMorgani
zationMforMidentifying,Massessing,MdecidingMonMresponsesMto,MandMreportingMonMoppo
rtunitiesMandMthreatsMthatMaffectMtheMachievementMofMitsMobjectives.
EventM-
MAnswerMAnMincidentMorMoccurrenceMresultingMfromMinternalMorMexternalMsourcesMth
atMaffectsMtheMimplementationMofMstrategyMorMachievementMofMobjectives.
ImpactM-MAnswerMTheMresult,Meffect,MorMconsequencesMofManMevent.
InherentMLimitationsM-
MAnswerMLimitationsMofMriskMmanagement,Mcontrol,MandMgovernanceMrelatedMtoMhum
anMjudgement,MresourceMlimitations,MandMtheMneedMtoMbalanceMtheMcostsMofMcontro
lsMinMrelationMtoMexpectedMbenefits;MconsidersMtheMrealityMofMbreakdownsMoccurring
MandMtheMpossibilityMofMmanagementMoverrideMandMcollusion.
InherentMRiskM(orMAbsoluteMRisk)M-
MAnswerMTheMriskMderivedMfromMtheMenvironmentMwithoutMtheMmitigatingMeffectsMo
fMinternalMcontrols
