Internal Control and Risk Management Quiz

<p>To provide guidance for implementing the FMFIA and OMB Circular A-123 within the Department of Defense. (A)</p> Signup and view all the answers

<p>To require ongoing evaluations and reports on the adequacy of agencies' internal control systems. (C)</p> Signup and view all the answers

<p>To mitigate identified risks and ensure organizational objectives are achieved. (D)</p> Signup and view all the answers

<p>Financial Performance (B)</p> Signup and view all the answers

<p>Financial losses due to fraud or misappropriation. (D)</p> Signup and view all the answers

<p>Inefficient utilization of resources. (C)</p> Signup and view all the answers

<p>Preventing unauthorized access and use of organizational assets. (B)</p> Signup and view all the answers

<p>The need to prioritize specific projects over others. (B)</p> Signup and view all the answers

<p>A process driven by the oversight body, management, and personnel, providing reasonable assurance of achieving organizational objectives. (C)</p> Signup and view all the answers

<p>Through the enactment of laws and regulations that mandate internal control systems. (A)</p> Signup and view all the answers

<p>Maximizing organizational profit (B)</p> Signup and view all the answers

<p>To define and explain the standards for assessing internal control in federal government entities (D)</p> Signup and view all the answers

<p>Separation of duties (A)</p> Signup and view all the answers

<p>Analysis of organizational culture (C)</p> Signup and view all the answers

<p>Providing reasonable assurance against unauthorized acquisition, use, or disposition of assets (A)</p> Signup and view all the answers

<p>A process effected by the entity's oversight body, management, and other personnel (B)</p> Signup and view all the answers

<p>Internal control is a flexible framework that can be adapted to different situations. (B)</p> Signup and view all the answers

<p>It ensures the efficient use of public resources and accountability. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>To serve as a standard for all financial reporting within the federal government. (A)</p> Signup and view all the answers

<p>The significance and materiality of information system control risks. (C)</p> Signup and view all the answers

<p>FISMA requires each agency to conduct independent evaluations of their information security programs, and FISCAM can be used as a guideline for these evaluations. (E)</p> Signup and view all the answers

<p>The Federal Managers' Financial Integrity Act (FMFIA). (B)</p> Signup and view all the answers

<p>All of the above. (E)</p> Signup and view all the answers

<p>A comprehensive methodology for developing and implementing an information security program. (D)</p> Signup and view all the answers

<p>It requires agencies to create and maintain internal controls that support overall data quality in their reports. (A)</p> Signup and view all the answers

<p>To establish a foundation for control, including the organization's culture and ethical values. (C)</p> Signup and view all the answers

<p>It provides guidance on designing and implementing effective internal controls to achieve organizational objectives. (A)</p> Signup and view all the answers

<p>Compliance activities (C)</p> Signup and view all the answers

<p>To identify and analyze potential threats to the organization's achievement of its objectives. (B)</p> Signup and view all the answers

<p>To implement policies and procedures designed to address risks identified in the risk assessment. (A)</p> Signup and view all the answers

<p>Strategic planning and decision-making. (D)</p> Signup and view all the answers

<p>Monitoring ensures that controls are implemented and operating effectively. (B)</p> Signup and view all the answers

<p>Ensuring that relevant information is communicated to appropriate personnel in a timely manner. (A)</p> Signup and view all the answers

<p>To communicate the level of assurance provided regarding the effectiveness of internal controls and financial systems. (C)</p> Signup and view all the answers

<p>Unmodified statement of assurance (B)</p> Signup and view all the answers

<p>It states that internal controls are effective with the exception of one or more material weaknesses. (D)</p> Signup and view all the answers

<p>They are severe control deficiencies that significantly impact the effectiveness of internal controls. (A)</p> Signup and view all the answers

<p>When the DoD or OSD component has conducted limited or inadequate assessments. (D)</p> Signup and view all the answers

<p>A format prescribed by the Managers' Internal Control Program and FIAR guidance. (D)</p> Signup and view all the answers

<p>A list of all material weaknesses, along with corrective action plans. (D)</p> Signup and view all the answers

<p>They must be reported with their current status as of the date the statement is signed. (B)</p> Signup and view all the answers

A framework for assessing and managing all types of organizational risk.

Processes to ensure the integrity of financial and operational effectiveness.

Committee of Sponsoring Organizations; sets standards for risk management.

A 1982 act requiring ongoing evaluation of internal control systems in agencies.

Guidance for the Department of Defense on internal control procedures.

Risks related to the effectiveness of internal controls.

Risks arising from personal integrity and gain issues.

Adhering to laws and regulations.

Effectiveness and efficiency of an organization's processes.

Reliability of information shared internally and externally.

The risk remaining after controls are implemented.

A key document defining internal control standards.

Methods an agency can choose to ensure data quality and internal control.

Controls related to the quality of internal and external reporting.

Set of standards defining internal control for federal government.

Methodology for auditing federal information systems.

Evaluation method focusing on materiality and risk in audits.

Requires annual evaluation of federal agencies' information security.

Documents where agencies report on their internal controls.

Significance of information that affects audit procedures.

The foundational aspect providing structure for achieving objectives.

Process of identifying and evaluating risks to objectives.

Quality of information and communication supporting internal controls.

Ongoing assessment of performance and resolution of audit findings.

Seventeen principles derived from the five components of internal control.

Includes operations, reporting, and compliance within organizations.

Five components are essential for effective internal control.

Effectiveness, reliability, and compliance objectives of internal control.

Ensuring operations are effective and efficient.

Assuring the accuracy of financial statements and reports.

Adhering to applicable laws and regulations.

A level of certainty, not absolute, in achieving objectives.

Internal control is an ongoing component of operations.

A document outlining the assurance levels for financial reporting.

Confirms ICs are effective with no material weaknesses reported.

Indicates ICs are effective except for noted material weaknesses.

Indicates that no assurance is provided due to assessment shortcomings.

A deficiency in internal controls that results in risks of errors in financial reporting.

Plans to address and resolve identified material weaknesses.

Framework guiding how statements of assurance should be formatted and reported.

The requirement to meet federal standards in financial reporting and internal controls.