1. Solution = A Question from Domain I
(A) Correct. Employees at all levels are responsible for internal control and getting together to discuss it in a facilitated workshop reinforces employees' responsibility.
(B) Incorrect. Internal control is a responsibility of senior management, but not solely their responsibility. While senior management is ultimately responsible for overall internal control, choice A is better because it is an underlying philosophy of CSA.
(C) Incorrect. While operational personnel will assess internal control in CSA, their assessments are not considered independent since they perform the work. Internal auditors are often called upon to provide independent assessment of internal control through validation or follow-up of CSA results.
(D) Incorrect. This is not an underlying philosophy of CSA.
Possible reference:
Control Self-Assessment: A Practical Guide. By Larry Hubbard. pp. 5-7.
Control Self-Assessment: Experience, Current Thinking, and Best Practices. Prepared by Arthur Andersen LLP for The IIA-Ottawa Chapter. p. 2.
2. Solution = B
Question from Domain II
(A) Incorrect. This phrase best describes a process-based approach, although control processes are not the only processes reviewed in this approach.
(B) Correct. A control-based approach concentrates on how well controls are working to manage risks. The key risks and controls are generally identified before the workshop.
(C) Incorrect. While control design could be compared to control frameworks in a control-based approach, this does not adequately describe the process. A control-based process is more likely to examine the gap between control design and control effectiveness in managing risks.
(D) Incorrect. Cost-effectiveness could be discussed in a control-based CSA workshop, but it is not the primary focus of this process.
Possible reference:
Control Self-Assessment: A Practical Guide. By Larry Hubbard. pp. 15-17, 94-95 (from IIA PPP 98-2).
3. Solution = BQuestion from Domain II
(A) Incorrect. Canceling the workshop would not be appropriate based solely on a possibility of staff resistance to group discussions.
(B) Correct. Preparation through pre-workshop interviews and meetings allows the facilitator to discuss potential problems or culture issues with management or attendees. The facilitator can then be prepared to address these issues in the workshop.
(C) Incorrect. While successes in other departments may be used in marketing CSA, they would only be relevant in this situation if the other participants had been originally resistant to group discussion as well. Choice B is a better response.
(D) Incorrect. Although CSA may often overcome resistance to group discussion, it is not guaranteed. Choice B is a better response because it addresses the need to prepare for possible resistance.
Possible reference:
Control Self-Assessment: A Practical Guide. By Larry Hubbard. pp. 45-46.
4. Solution = BQuestion from Domain II
(A) Incorrect. This is a major pitfall that can impair the implementation of CSA. Use of inadequate or untrained facilitators can ruin an otherwise well-planned CSA session.
