GRCA Sample Questions Answers

When performing an assessment, it is important to remain flexible and adjust the execution plan as new information is uncovered. This adaptive approach ensures that the assessment remains relevant and effective in identifying issues and areas for improvement. Rigidly adhering to theoriginal plan, regardless of new findings, can result in missed opportunities to address critical risks and controls. Adjusting procedures as appropriate based on new information enhances the overall quality and effectiveness of the assessment.References:

ISO 19011:2018 - Guidelines for auditing management systems

COSO Internal Control – Integrated Framework

Compliance is defined as a measure of the degree to which obligations and requirements are addressed. It involves adhering to laws, regulations, policies, and standards that are relevant to the organization. Compliance ensures that the organization meets its legal and ethical obligations, thereby avoiding legal penalties, reputational damage, and operational disruptions. Effective compliance programs involve continuous monitoring, training, and auditing to ensure all requirements are met and maintained.References:

ISO 19600:2014 - Compliance management systems - Guidelines

NIST SP 800-37 Rev. 2 - Risk Management Framework for Information Systems and Organizations

The common attributes of an assurance professional are independence, objectivity, and diligence. Independence ensures that the assurance professional is free from any influence or conflict of interest that could affect their judgment. Objectivity refers to the ability to provide an unbiased and impartial assessment. Diligence involves a thorough and careful approach to the assurance process, ensuring that all relevant aspects are evaluated and reported accurately. These attributes are essential for maintaining the credibility and reliability of assurance activities.References:

IIA Standards for the Professional Practice of Internal Auditing

ISO 19011:2018 - Guidelines for auditing management systems

Inspecting the use of a RACI template in the field to see how it is being used is classified as a substantive test. This test involves examining actual instances of the RACI template's application to verify its proper use in practice. It goes beyond evaluating the design of the control (the template itself) and looks at the real-world implementation and effectiveness, providing evidence on how the control operates in practice.

References:

AICPA Auditing Standards

ISO 19011:2018 - Guidelines for auditing management systems

A written report by an assurance professional is most likely to be the most objective source of evidence. Assurance professionals are trained to conduct evaluations impartially, following standardized methodologies and best practices. Their reports are based on documented evidence and systematic analysis, ensuring a high level of objectivity and reliability compared to vocalized statements or reports by process owners, who may have biases or conflicts of interest.References:

IIA Standards for the Professional Practice of Internal Auditing

ISO 19011:2018 - Guidelines for auditing management systems

The key steps in the Assurance Process are Plan, Perform, Report, and Follow-Up. This structured approach ensures that assurance activities are conducted methodically and effectively:

Plan:Define the objectives, scope, and methodology of the assurance activity.

Perform:Carry out the assurance activity based on the defined plan.

Report:Document and communicate findings, conclusions, and recommendations.

Follow-Up:Verify that recommendations are implemented and assess their effectiveness.

These steps help ensure that assurance activities provide valuable insights and drive improvements within the organization.References:

IIA Standards for the Professional Practice of Internal Auditing

COSO Internal Control – Integrated Framework

While GRC Assessment Tools can greatly aid in conducting a GRC assessment by providing structured methodologies and frameworks, it is not mandatory to use them. Assessments can be conducted using other methods and tools as long as they are systematic and thorough. The key is to apply professional judgment and ensure the assessment is comprehensive and aligned with the organization's needs.References:

ISO 31000:2018 - Risk management – Guidelines

COSO Internal Control – Integrated Framework

Achieving principled performance means reliably achieving objectives, addressing uncertainty, and acting with integrity. This concept integrates the management of performance, risk, and compliance to ensure that an organization not only meets its goals but does so ethically and sustainably. It involves creating a culture of accountability, transparency, and ethical behavior while systematically managing risks and ensuring compliance with relevant regulations and standards. Principled performance is about achieving success while maintaining high standards of integrity and responsibility.References:

OCEG (Open Compliance and Ethics Group) Red Book GRC Capability Model

ISO 37001:2016 - Anti-bribery management systems

To evaluate the operating effectiveness of controls, conducting control testing is essential. Control testing involves examining whether controls are operating as intended and are effective in mitigating risks. This type of testing assesses the design and implementation of controls to ensure they are functioning properly and achieving their intended purpose. Substantive testing, on the other hand, focuses on verifying the accuracy and validity of transactions and data, rather than the effectiveness of controls.References:

COSO Internal Control – Integrated Framework

ISO 31000:2018 - Risk management – Guidelines

If follow-up discovers that actions and controls haven't been implemented, it is important to use professional judgment and work with the action owner to understand why the plans have not been implemented. Immediate escalation to the board without understanding the context may not be the most effective approach. Engaging with the action owner can help identify obstacles and facilitate a constructive resolution. Escalation should be considered if there is a significant risk or if there is consistent non-compliance despite reasonable efforts to address the issue.References:

ISO 19011:2018 - Guidelines for auditing management systems

IIA Standards for the Professional Practice of Internal Auditing