Compliance Monitoring & Reporting Flashcards
7 cards from real CCT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Compliance Monitoring & Reporting flashcards as text
A compliance officer discovers that a key control has been failing silently for 60 days with no alert generated. What does this scenario most likely indicate?
Answer: A gap in the monitoring system's alert thresholds or coverage
Silent control failures typically expose gaps in monitoring coverage, alert thresholds, or logging configurations that allowed the issue to go undetected.
Under the Bank Secrecy Act (BSA), a financial institution must file a Suspicious Activity Report (SAR) within how many calendar days of detecting a suspicious transaction?
Answer: 30 days
BSA regulations require SARs to be filed within 30 calendar days of the date the suspicious activity is detected.
Which metric is MOST useful for measuring the effectiveness of a compliance monitoring program over time?
Answer: Repeat findings rate across audit cycles
A high repeat findings rate indicates that corrective actions are not resolving root causes, making it a key effectiveness indicator.
A compliance team uses a heat map to prioritize its monitoring activities. What two dimensions does a risk heat map typically plot?
Answer: Likelihood and impact
Risk heat maps plot likelihood (probability) on one axis and impact (severity) on the other to prioritize risks visually.
When an organization conducts a 'look-back review,' what is the primary purpose?
Answer: To retroactively examine past transactions or activities for compliance violations
A look-back review examines historical records to identify whether past activities violated regulations that may not have been flagged at the time.
Which of the following BEST describes 'continuous monitoring' in a compliance context?
Answer: Automated, ongoing review of controls and transactions in near real-time
Continuous monitoring uses automated tools to review controls and data on an ongoing basis, enabling faster detection of issues than periodic reviews.
A compliance report identifies a 'material weakness.' According to internal control frameworks, what does this term mean?
Answer: A significant deficiency that has a reasonable possibility of resulting in a material misstatement
A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility of a material misstatement in financial statements.