Quizizz wae class Internal Audit Feb 2020 DATE 12 Questions 1. Conducting physical inventory and reconciliation of Bank accounts are examples Oo a) Preventive Controls C1 b) Detective Controls Oo ¢) Directive Controls O 4) IT Controls 2. Which one is the second line of defense in risk control for an organization.? Oo a) Board Of Directors Cb) Sales Staff Oo Q) Internal Audit, C d) Compliance Department 3. The directors of ABC Corp. are reevaluating their "tone at the top.” They realize the phrase “tone at the top" is used todescribe the example set by directors, officers and executives through their statements and daily actions. The board members also realize written policies need to reinforce the tone, but are unsure how to integrate written policies into the “tone at the top.” If you were advising the board, what would you tell them is the most important? C a) Protection of the organization's assets] b) A comprehensive code of conduct 1 o Risk Policy Cd) Organization communicationso o o Depositors face substantial risks on the Bank they deal with. Itis the role of CBUAE to protect depositors. How does CBUAE protect depositors from Liquidity Risk. Choose two. a) Credit Deposit Ratio (1 b) BASEL 3 Liquidity Rules ©) Credit Regulations 1 4) Capital Adequacy Rules CBUAE protects depositors using Capital Adequacy Regulation(CAR). Which risk does CAR reduce a) Credit Risk 1b) Liquidity Risk ©) High leverage Od) Credit Creation Which one of the following is an element of COSO Internal Control framework? a) Human resources Management C1 b) Professional ethics and responsibilities ©) Client acceptance Td) Risk Assessment seen iS presumed to be impaired if an internal auditor provides assurance services for an activity for which the internal auditor had responsibility within the previous year-Fill in the blank with the most appropriate answer a) Independence 1 b) Due Professional Care ©) Objectivity Od) Proficiency An effective internal audit function provides independent assurance to the board of directors and senior management on the quality and effectiveness of a bank’s:(Choose three) a) Internal Controls 0 b) Marketing and Promotion ©) Risk Management 1 4) Governance processes9. BASEL 2 Capital Adequacy Rules are a set of three rules called Pillars. The First Pillar deals with 1 a) ICAAP, Risk Management and SupervisoryL] b) Minimum Capital Charge for Credit Review Risk, Operational Risk and Market Risk 1 o) Market Discipline or Disclosures to Od) Liquidity Rules Market participants 10. Which are the causes of Operational Risk. (Choose Two) CO a) Human errors Cb) Fluctuations in Market Prices O_o) Borrower defaults C d) External Events beyond human control 11. The following are the steps in Risk Management Process. Which step deals with Risk appetite of the Bank Ca) Identification of Risk Cb) Risk Evaluation Oo ©) Risk Treatment CO d) Risk Monitoring 12. What are two mitigating controls for risks arising out of external events like Fire or Terrorist attacks? C1 a) Segregation of Duties C1 b) Business continuity plans Og Collateral Security Od) InsuranceAnswer Key 1b 4. a,b 7. c 10. ad 2 6d 5. c 8 acd 11. b 3b 6. d 90 bb 12. bd