OCEG GRCA GRC Auditor Certification Exam Exam Practice Test

During the planning phase of an assessment, it is not necessary to conduct a complete risk assessment and detailed testing. Instead, limited information gathering and initial procedures are sufficient to estimate inherent risk and control risk, allowing planning to proceed. This initial estimate helps to set the scope and focus of the assessment. Detailed testing and a comprehensive risk assessment can be conducted during the actual assessment phase. This approach allows for a more efficient and flexible planning process.References:

ISO 19011:2018 - Guidelines for auditing management systems

NIST SP 800-30 Rev. 1 - Guide for Conducting Risk Assessments

Proactive controls are those measures implemented to prevent undesirable events before they occur. Promoting controls are designed to encourage desired behaviors and outcomes, such as compliance with policies and procedures. Preventive controls are aimed at stopping undesirable events or actions before they happen, such as implementing security measures to prevent unauthorized access. Both types of controls are essential for effective risk management and ensuring the security and integrity of an organization's processes and systems.References:

COSO Internal Control – Integrated Framework

ISO/IEC 27002:2013 - Information technology - Security techniques - Code of practice for information security controls

To evaluate the operating effectiveness of controls, conducting control testing is essential. Control testing involves examining whether controls are operating as intended and are effective in mitigating risks. This type of testing assesses the design and implementation of controls to ensure they are functioning properly and achieving their intended purpose. Substantive testing, on the other hand, focuses on verifying the accuracy and validity of transactions and data, rather than the effectiveness of controls.References:

COSO Internal Control – Integrated Framework

ISO 31000:2018 - Risk management – Guidelines

Compliance is most associated with a "measure of how well we are meeting obligations." Compliance involves adhering to laws, regulations, policies, and standards that apply to an organization. It ensures that the organization is fulfilling its legal, regulatory, and ethical obligations, thereby avoiding penalties, legal issues, and reputational damage. Compliance programs include policies, procedures, training, monitoring, and audits to ensure that all obligations are consistently met.References:

ISO 19600:2014 - Compliance management systems - Guidelines

NIST SP 800-37 Rev. 2 - Risk Management Framework for Information Systems and Organizations

It is important to confirm observations and recommendations with personnel who conduct the work being assessed. Engaging with them ensures accuracy and relevance in the findings and recommendations, as they provide context and insights that the assurance team might not have. This collaboration helps to avoid misunderstandings and ensures that the recommendations are practical and feasible for implementation.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

Assessments should be selected based on how objectives connect and prioritize the risk universe and assessment universe. This approach ensures that the assessments are aligned with the organization's strategic goals and that the most significant risks are addressed. It involves understanding the organization's risk landscape and prioritizing assessments that focus on theareas of highest impact and relevance to achieving objectives.References:

ISO 31000:2018 - Risk management – Guidelines

COSO Enterprise Risk Management – Integrating with Strategy and Performance

The dimensions of TOTAL Performance are Effectiveness, Resiliency, and Agility. Effectiveness refers to achieving the desired outcomes. Resiliency is the ability to recover from setbacks and continue operations. Agility is the capacity to adapt quickly to changes and new opportunities. These three dimensions collectively ensure that an organization can perform well under various conditions and sustain its success over time.References:

ISO 9001:2015 - Quality management systems – Requirements

COSO Enterprise Risk Management – Integrating with Strategy and Performance

Inspecting a RACI (Responsible, Accountable, Consulted, Informed) matrix for inclusion of best practice content is classified as a control test. This test evaluates whether the RACI matrix, a control tool, is designed and implemented according to best practices. It assesses the completeness and appropriateness of the matrix in defining roles and responsibilities, which is an aspect of control effectiveness.

References:

COSO Internal Control – Integrated Framework

ISO 31000:2018 - Risk management – Guidelines

The best sequence of testing is to conduct control testing first and then substantive testing. This approach ensures that the effectiveness of internal controls is evaluated before examining the details of transactions and data. By testing controls first, assurance providers can determine if controls are reliable and can potentially reduce the extent of substantive testing needed. Effective controls can provide confidence that transactions and data are accurate, reducing the need for extensive substantive testing.References:

AICPA Auditing Standards

ISO 19011:2018 - Guidelines for auditing management systems

A NEGATIVE assurance opinion or statement indicates that, based on the procedures performed and evidence obtained, the assurance provider did not identify any reasons to believe that the subject matter does not conform to the applicable criteria. This form of opinion does not provide absolute assurance but rather limited assurance, suggesting that nothing came to the auditor's attention that causes them to believe the subject matter is not fairly stated.References:

AICPA Auditing Standards

IIA Standards for the Professional Practice of Internal Auditing

Follow-up on the implementation status of recommendations based on high priority, due or overdue items, or time-sensitive items is known as Follow-Up by Targeted Review. This approach focuses on areas that are of critical importance or where timely implementation is essential. It helps ensure that the most significant risks are addressed promptly and that any delays in addressing recommendations are identified and managed.References:

IIA Standards for the Professional Practice of Internal Auditing

COSO Internal Control – Integrated Framework

The statement that producing value and protecting value are trade-offs and cannot be done at the same time is false. In fact, both can and should be pursued concurrently. Effective governance, risk management, and compliance (GRC) strategies integrate the production of value (achieving business objectives and growth) with the protection of value (safeguarding assets, ensuring compliance, and managing risks). This integrated approach ensures sustainable performance and long-term success. Organizations that balance both aspects can achieve principled performance by reliably achieving objectives, addressing uncertainty, and acting with integrity.References:

ISO 31000:2018 - Risk management – Guidelines

COSO Enterprise Risk Management – Integrating with Strategy and Performance

The level of assurance required for an assessment can vary depending on the purpose, scope, and objectives of the assessment. It is crucial to define the desired level of assurance (low, medium, or high) before beginning the assessment to ensure that the approach, methodology, and resources allocated are appropriate. This helps in setting clear expectations and aligning the assessment process with the organization's risk tolerance and regulatory requirements.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Enterprise Risk Management – Integrating with Strategy and Performance