CA Foundation Business Economics Questions 2023 - Part 32
Fri, 03 Mar 2023
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CRISC—Certified in Risk and Information Systems Control Certification Questions and answer - Part 34
1. Which of the following is the greatest risk to reporting?
A) Integrity of data
B) Availability of data
C) Confidentiality of data
D) Reliability of data
2. Which negative risk response usually has a contractual agreement?
A) Sharing
B) Transference
C) Mitigation
D) Exploiting
3. Which of the following is the MOST important aspect to ensure that an accurate risk register is maintained?
A) Publish the risk register in a knowledge management platform with workflow features that periodically contacts and polls risk assessors to ensure accuracy of content
B) Perform regular audits by audit personnel and maintain risk register
C) Submit the risk register to business process owners for review and updating
D) Monitor key risk indicators, and record the findings in the risk register
4. Which of the following test is BEST to map for confirming the effectiveness of the system access management process?
A) user accounts to human resources (HR) records.
B) user accounts to access requests.
C) the vendor database to user accounts.
D) access requests to user accounts.
5. Which of the following is the way to verify control effectiveness?
A) The capability of providing notification of failure.
B) Whether it is preventive or detective.
C) Its reliability.
D) The test results of intended objectives.
A) Integrity of data
B) Availability of data
C) Confidentiality of data
D) Reliability of data
2. Which negative risk response usually has a contractual agreement?
A) Sharing
B) Transference
C) Mitigation
D) Exploiting
3. Which of the following is the MOST important aspect to ensure that an accurate risk register is maintained?
A) Publish the risk register in a knowledge management platform with workflow features that periodically contacts and polls risk assessors to ensure accuracy of content
B) Perform regular audits by audit personnel and maintain risk register
C) Submit the risk register to business process owners for review and updating
D) Monitor key risk indicators, and record the findings in the risk register
4. Which of the following test is BEST to map for confirming the effectiveness of the system access management process?
A) user accounts to human resources (HR) records.
B) user accounts to access requests.
C) the vendor database to user accounts.
D) access requests to user accounts.
5. Which of the following is the way to verify control effectiveness?
A) The capability of providing notification of failure.
B) Whether it is preventive or detective.
C) Its reliability.
D) The test results of intended objectives.
1. Right Answer: D
Explanation: Reporting risks are caused due to wrong reporting which leads to bad decision. This bad decision due to wrong report hence causes a risk on the functionality of the organization. Therefore, the greatest risk to reporting is reliability of data. Reliability of data refers to the accuracy, robustness, and timing of the data.Incorrect Answers:A, B, C: Integrity, availability, and confidentiality of data are also important, but these three in combination comes under reliability itself.
2. Right Answer: B
Explanation: Transference is the risk response that transfers the risk to a third party, usually for a fee. Insurance and subcontracting of dangerous works are two common examples of transference with a contractual obligation.Incorrect Answers:A: Sharing is a positive risk response. Note that sharing may also have contractual obligations, sometimes called teaming agreements.C: Mitigation is a negative risk response used to lower the probability and/or impact of a risk event.D: Exploiting is a positive risk response and not a negative response and doesn't have contractual obligations.
3. Right Answer: A
Explanation: A knowledge management platform with workflow and polling feature will automate the process of maintaining the risk registers. Hence this ensures that an accurate and updated risk register is maintained.Incorrect Answers:B: Audit personnel may not have the appropriate business knowledge in risk assessment, hence cannot properly identify risk. Regular audits may also cause hindrance to the business activities.C: Business process owners typically cannot effectively identify risk to their business processes. They may not have the ability to be unbiased and may not have the appropriate skills or tools for evaluating risks.D: Monitoring key risk indicators, and record the findings in the risk register will only provide insights to known and identified risk and will not account for obscure risk, i.e. , risk that has not been identified yet.
4. Right Answer: B
Explanation: Tying user accounts to access requests confirms that all existing accounts have been approved. Hence, the effectiveness of the system access management process can be accounted.Incorrect Answers:A: Tying user accounts to human resources (HR) records confirms whether user accounts are uniquely tied to employees, not accounts for the effectiveness of the system access management process.C: Tying vendor records to user accounts may confirm valid accounts on an e-commerce application, but it does not consider user accounts that have been established without the supporting access request.D: Tying access requests to user accounts confirms that all access requests have been processed; however, the test does not consider user accounts that have been established without the supporting access request.
5. Right Answer: D
Explanation: Control effectiveness requires a process to verify that the control process worked as intended and meets the intended control objectives.Hence the test result of intended objective helps in verifying effectiveness of control.Incorrect Answers:A: Notification of failure does not determine control strength, hence this option is not correct.B: The type of control, like preventive or detective, does not help determine control effectiveness.C: Reliability is not an indication of control strength; weak controls can be highly reliable, even if they do not meet the control objective.
Explanation: Reporting risks are caused due to wrong reporting which leads to bad decision. This bad decision due to wrong report hence causes a risk on the functionality of the organization. Therefore, the greatest risk to reporting is reliability of data. Reliability of data refers to the accuracy, robustness, and timing of the data.Incorrect Answers:A, B, C: Integrity, availability, and confidentiality of data are also important, but these three in combination comes under reliability itself.
2. Right Answer: B
Explanation: Transference is the risk response that transfers the risk to a third party, usually for a fee. Insurance and subcontracting of dangerous works are two common examples of transference with a contractual obligation.Incorrect Answers:A: Sharing is a positive risk response. Note that sharing may also have contractual obligations, sometimes called teaming agreements.C: Mitigation is a negative risk response used to lower the probability and/or impact of a risk event.D: Exploiting is a positive risk response and not a negative response and doesn't have contractual obligations.
3. Right Answer: A
Explanation: A knowledge management platform with workflow and polling feature will automate the process of maintaining the risk registers. Hence this ensures that an accurate and updated risk register is maintained.Incorrect Answers:B: Audit personnel may not have the appropriate business knowledge in risk assessment, hence cannot properly identify risk. Regular audits may also cause hindrance to the business activities.C: Business process owners typically cannot effectively identify risk to their business processes. They may not have the ability to be unbiased and may not have the appropriate skills or tools for evaluating risks.D: Monitoring key risk indicators, and record the findings in the risk register will only provide insights to known and identified risk and will not account for obscure risk, i.e. , risk that has not been identified yet.
4. Right Answer: B
Explanation: Tying user accounts to access requests confirms that all existing accounts have been approved. Hence, the effectiveness of the system access management process can be accounted.Incorrect Answers:A: Tying user accounts to human resources (HR) records confirms whether user accounts are uniquely tied to employees, not accounts for the effectiveness of the system access management process.C: Tying vendor records to user accounts may confirm valid accounts on an e-commerce application, but it does not consider user accounts that have been established without the supporting access request.D: Tying access requests to user accounts confirms that all access requests have been processed; however, the test does not consider user accounts that have been established without the supporting access request.
5. Right Answer: D
Explanation: Control effectiveness requires a process to verify that the control process worked as intended and meets the intended control objectives.Hence the test result of intended objective helps in verifying effectiveness of control.Incorrect Answers:A: Notification of failure does not determine control strength, hence this option is not correct.B: The type of control, like preventive or detective, does not help determine control effectiveness.C: Reliability is not an indication of control strength; weak controls can be highly reliable, even if they do not meet the control objective.
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