MCQ

Question 3: Which of the following represents an inherent risk for a financial institution?

• Bank reconciliations are not performed on a timely basis.

• The economy goes into a recession.

• Customer credit check not performed.

• An error occurs in a loan loss calculation.

Question 4: Which of the following represents a control risk for a retail business?

• Bank reconciliations are not performed on a timely basis.

• Two employees are colluding to facilitate theft.

• There are many competitors in the region.

• A bank reconciliation is not performed correctly

Question 5: Which of the following represents a residual risk for a services company?

• Two employees are colluding to facilitate theft.

• All checks require two signatures.

• Bank accounts are reconciled weekly.

• A manager reviews all account reconciliations.