OCEG Updated GRCP Exam Questions and Answers by ishaq

Ongoing and periodic review activities are designed to evaluate the performance of actions and controls in terms of their effectiveness, efficiency, responsiveness, and resilience.

Purpose of Reviews:

Effectiveness: Ensures objectives are being met.

Efficiency: Confirms optimal use of resources.

Responsiveness: Measures the speed of adaptation to changes or issues.

Resilience: Assesses the ability to recover from disruptions.

Why Other Options Are Incorrect:

A: Reviews complement external audits, not replace them.

B: Cost reduction may be a result but is not the primary purpose.

D: Documentation for legal defenses is a secondary benefit, not the main goal.

The PERFORM component includes reactive, preventive, and corrective actions and controls, which are essential for executing governance, risk, and compliance processes effectively.

Types of Actions and Controls:

Reactive Controls: Respond to events or risks that have already occurred (e.g., incident response).

Preventive Controls: Aim to avoid or mitigate risks before they materialize (e.g., access controls).

Corrective Controls: Address issues or gaps identified after an event (e.g., remediation plans).

Integration in the PERFORM Component:

These controls ensure that the organization performs effectively while minimizing risks and achieving compliance.

Why Other Options Are Incorrect:

A: Internal, external, and hybrid controls describe types of oversight, not action types.

B: Mandatory, voluntary, and optional actions relate to obligations, not control types.

C: Proactive, detective, and responsive controls mix similar concepts but do not fully describe the PERFORM component.

Assurance Actions & Controls in the IACM are designed to validate and confirm that the organization's objectives are being achieved and that processes, controls, and systems are functioning effectively.

Key Points About Assurance Actions & Controls:

Purpose:

Assurance provides independent and objective evaluations of processes, controls, and outcomes to ensure reliability and accountability.

Examples include internal audits, compliance assessments, and external certifications.

Support for Assurance Personnel:

These controls assist assurance professionals, such as auditors or compliance officers, in delivering credible and effective assurance services.

Why Option A is Correct:

The role of Assurance Actions & Controls is to assist assurance personnel in delivering assurance services by providing reliable data, processes, and evaluations.

Why the Other Options Are Incorrect:

B: Assessing new products is a business development function, not an assurance activity.

C: Financial statement analysis falls under financial management, not assurance controls.

D: Creating a positive culture is a leadership activity, not an assurance function.

References and Resources:

COSO Internal Control – Integrated Framework – Discusses assurance activities.

IIA Standards – Provide guidance on assurance roles in internal auditing.