Question

1. A program verifies that a vendor number is valid. This is an example of a ____ control.

1. Preventive
2. Detective
3. Corrective
4. Programmed

2. This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both.

1. Control activities
2. Monitoring
3. Objective setting
4. Risk exposure

3. A component of a fraud risk management program could be:

1. Fraud awareness activities
2. An affirmation process
3. A conflict disclosure protocol
4. A fraud risk assessment
5. Any of the above

Answer 1

1) The correct answer is Preventive control.

The program is planned & implemented to prevent the error from occurring. Preventive controls are designed to prevent the occurrence of fraud & errors in the entity. Therefore, this is an example of preventive control.

2) The correct answer is Monitoring.

In order to separately evaluate the activities, it includes continuous monitoring of the risk environment & of those stratgies' performance designed for risk management.