Question 1

What is the difference between reasonable assurance and limited assurance?

Options :

A :

Reasonable assurance is provided by external auditors as part of a financial audit and indicates conformity to suitable criteria and freedom from material error, while limited assurance results from reviews, compilations, and other activities performed by competent personnel who are sufficiently objective about the subject matter.

B :

Reasonable assurance is provided by internal auditors as part of a risk assessment, while limited assurance results from external audits and regulatory examinations.

C :

Reasonable assurance is provided by the Board of Directors as part of governance activities, while limited assurance results from employee self-assessments.

D :

Reasonable assurance is provided by management as part of strategic planning, while limited assurance results from operational reviews and performance evaluations.

Answer: A

Question 2

What is the duality of compliance, and how does it relate to risk?

Options :

A :

The duality of compliance refers to the distinction between domestic and international regulations that an organization must follow.

B :

The duality of compliance refers to the trade-off between investing in compliance measures and allocating resources to other business areas.

C : The duality of compliance involves addressing both compliance with obligations and compliancerelated risks. Compliance involves meeting mandatory and voluntary obligations, while compliancerelated risks involve addressing the risk of negative outcomes associated with non-compliance.

D :

The duality of compliance refers to the balance between financial gains and ethical considerations in business decisions.

Answer: C

Question 3

What criteria should objectives meet to be considered effective?

Options :

A : Objectives should be based only on financial metrics for each unit or department

B : Objectives should meet the SMART criteria (Specific, Measurable, Achievable, Relevant, Timebound)

C : Objectives should only have one timescale, e.g., quarterly, annually, 5 years

D : Objectives should be sought by a majority of the stakeholder categories for the organization

Answer: B

Question 4

Which Critical Discipline of the Protector Skillset includes skills to constrain activities and set direction?

Options :

A : Audit & Assurance

B : Governance & Oversight

C : Risk & Decisions

D : Compliance & Ethics

Answer: B

Question 5

What is the primary focus of management actions and controls in the IACM?

Options :

A : To oversee employees and meet target objectives for the unit being managed.

B : To directly address opportunities, obstacles, and obligations.

C : To minimize costs and maximize profits.

D : To ensure strict adherence to external regulations and internal policies.

Answer: B

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