GRCA GRC Auditor Certification Exam Questions and Answers

Including the personnel who perform the work being assessed in the planning process is important because they possess valuable insights and knowledge about the processes and controls in place. Their involvement helps to ensure that the assessment is accurately scoped and relevant parameters are set. They can provide context and clarify operational details, contributing to a more effective and targeted assessment. Moreover, their engagement can foster a cooperativeenvironment and facilitate smoother assessment execution.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

When inspecting information, the Content Criteria provides a guide to evaluating the design of the control. Content Criteria help ensure that the controls are appropriately designed to achieve their intended purpose. Evaluating the design involves assessing whether the control's structure, procedures, and policies are adequate to mitigate identified risks and meet regulatory and organizational requirements.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

Proactive controls are those measures implemented to prevent undesirable events before they occur. Promoting controls are designed to encourage desired behaviors and outcomes, such as compliance with policies and procedures. Preventive controls are aimed at stopping undesirable events or actions before they happen, such as implementing security measures to prevent unauthorized access. Both types of controls are essential for effective risk management and ensuring the security and integrity of an organization's processes and systems.References:

COSO Internal Control – Integrated Framework

ISO/IEC 27002:2013 - Information technology - Security techniques - Code of practice for information security controls

Governance is defined as "externally directing, controlling and evaluating an entity, process, or resource". It involves establishing policies, and continuous monitoring of their proper implementation, by the members of the governing body of an organization. It ensures that the entity is operating effectively and in alignment with its objectives and regulatory requirements. Governance encompasses a wide range of activities, including strategic planning, decision-making, and oversight, all aimed at achieving the entity's goals while managing risk and ensuring compliance.References:

ISO 38500:2015 - Information technology - Governance of IT for the organization

OECD Principles of Corporate Governance

Performance is most associated with a "measure of how well we are addressing opportunities." Performance management focuses on setting goals, monitoring progress, and evaluating outcomes to ensure that an organization is effectively taking advantage of opportunities to achieve its objectives. It involves measuring and managing activities that lead to improved efficiency, effectiveness, and innovation. By addressing opportunities, organizations can enhance their performance and create value.References:

ISO 9001:2015 - Quality management systems – Requirements

Balanced Scorecard Institute - Performance Management Framework

A NEGATIVE assurance opinion or statement indicates that, based on the procedures performed and evidence obtained, the assurance provider did not identify any reasons to believe that the subject matter does not conform to the applicable criteria. This form of opinion does not provide absolute assurance but rather limited assurance, suggesting that nothing came to the auditor's attention that causes them to believe the subject matter is not fairly stated.References:

AICPA Auditing Standards

IIA Standards for the Professional Practice of Internal Auditing

Assessments should be selected based on how objectives connect and prioritize the risk universe and assessment universe. This approach ensures that the assessments are aligned with the organization's strategic goals and that the most significant risks are addressed. It involves understanding the organization's risk landscape and prioritizing assessments that focus on theareas of highest impact and relevance to achieving objectives.References:

ISO 31000:2018 - Risk management – Guidelines

COSO Enterprise Risk Management – Integrating with Strategy and Performance

The two factors that drive the potential level of assurance an assurance provider may target are competence and objectivity. Competence refers to the assurance provider's knowledge, skills, and experience necessary to perform the assessment effectively. Objectivity refers to the assurance provider's impartiality and independence from the area being assessed, ensuring that the assessment is unbiased and credible. Both factors are essential for providing a reliable and accurate assurance.References:

IIA Standards for the Professional Practice of Internal Auditing

ISO 19011:2018 - Guidelines for auditing management systems

The parameters of an assessment include Scope, Criteria, and Nature of Testing. These elements define the boundaries and focus of the assessment:

Scope:Defines the areas, processes, and activities to be assessed.

Criteria:Specifies the standards, policies, and regulations against which the assessment will be conducted.

Nature of Testing:Describes the types and extent of testing procedures that will be employed to gather evidence and evaluate compliance and performance.

These parameters ensure that the assessment is well-structured, targeted, and aligned with the objectives and requirements of the organization.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

Follow-up on the implementation status of recommendations based on high priority, due or overdue items, or time-sensitive items is known as Follow-Up by Targeted Review. This approach focuses on areas that are of critical importance or where timely implementation is essential. It helps ensure that the most significant risks are addressed promptly and that any delays in addressing recommendations are identified and managed.References:

IIA Standards for the Professional Practice of Internal Auditing

COSO Internal Control – Integrated Framework