Question 1

What is the BEST sequence of testing

Accepted Answer

A

Explanation: The most logical and efficient sequence in an assurance or audit process is to first perform tests of controls. The results of these tests determine the auditor's level of reliance on the organization's internal control system. If controls are deemed effective, the auditor can justify reducing the nature, timing, and extent of substantive testing. This risk-based approach, which is central to GRC principles, ensures that assurance resources are focused on areas of higher risk and optimizes the overall efficiency of the evaluation.

Question 2

Follow-up on the implementation status of the recommendation by assurance personnel is known as

Accepted Answer

B

Explanation: This process describes a fundamental activity within the assurance function (often the third line in a three-lines model). After an audit or review, assurance personnel issue recommendations to address identified weaknesses. To ensure these recommendations are effectively implemented and the associated risks are mitigated, the assurance function performs a follow-up. Because this verification is conducted by a team independent of the operational process owners, it is correctly termed "Follow-Up by Independent Assurance." This ensures an objective assessment of the implementation status.

Question 3

Which of the following is defined as "a measure of the desirable effect of uncertainty on objectives?

Accepted Answer

A

Explanation: The official OCEG GRC Capability Model defines risk as "the effect of uncertainty on objectives." This definition is neutral and encompasses deviations from the expected that can be positive, negative, or both. A "desirable effect" refers to the positive side of risk, often termed an opportunity. Therefore, within the GRC framework, the term "Risk" is the correct umbrella concept that includes the measure of desirable (positive) effects of uncertainty on achieving objectives, not just undesirable (negative) ones.

Question 4

What are the dimensions of TOTAL Performance?

Accepted Answer

A

Explanation: OCEG defines “Total Performance” as the overall result of a GRC capability when it is judged along three measurement dimensions: • Effectiveness – are desired objectives achieved? • Efficiency – are objectives achieved with optimal use of resources? • Responsiveness – how quickly and accurately does the capability detect and react to change? These three dimensions are listed together in the “Evaluate Total Performance” element of the OCEG GRC Capability Model (Red Book). No other dimensions (e.g., agility or resiliency) are named as part of Total Performance in the official model.

Question 5

Which one of these is most associated with a "measure of how well we are addressing opportunities"

Accepted Answer

B

Explanation: Performance is the measure of achieving objectives. In the context of Governance, Risk, and Compliance (GRC), an opportunity is defined as the possibility of an event occurring that will positively impact the achievement of objectives. Therefore, measuring how effectively an organization capitalizes on these opportunities is a direct assessment of its performance. Successfully addressing opportunities leads to enhanced value creation and the attainment or exceeding of strategic goals, which are the core components of performance management within the OCEG framework.

Question 6

When performing an Assessment, it is important to NEVER change the execution plan

Accepted Answer

False

Explanation: The statement is unequivocally false. Assessment execution plans are not meant to be rigid and unchangeable. In practice, an assessment is a dynamic process of discovery. As assessors gather evidence and perform tests, they may uncover new information, unexpected issues, or areas of higher-than-anticipated risk. A fundamental principle of effective assessment and assurance is the ability to adapt the plan based on these interim findings. Modifying the plan—for example, by expanding the scope, changing testing methods, or reallocating resources—is crucial to ensure that the assessment's objectives are met and that the final conclusions are accurate and relevant.

Question 7

During Assessment Planning, it is important to conduct a complete risk assessment and conduct detailed testing to understand inherent risks and control risk.

Accepted Answer

False

Explanation: The statement incorrectly merges activities from two distinct phases of the assessment process. Assessment Planning is the initial phase focused on defining the scope, objectives, timing, and resources for the assessment. This planning is typically informed by existing or high-level risk assessments to prioritize areas of focus. However, the detailed testing of controls and the execution of a complete risk assessment are activities that occur during the execution or fieldwork phase, which follows the planning phase. The plan dictates what will be tested; the testing itself is not part of the planning.

Question 8

An Assessment should target very low or zero Assurance Risk

Accepted Answer

False

Explanation: OCEG’s GRC Capability Model makes it clear that the goal of any assurance-related assessment is to obtain reasonable — not absolute — assurance. Because of unavoidable limitations such as sampling, judgment, time and cost, “assurance risk” (the risk that the assessment conclusions are wrong or incomplete) can only be driven to a level that the organization judges acceptable; it can never be completely eliminated. Therefore, stating that an assessment “should target very low or zero assurance risk” is incorrect: zero assurance risk is unattainable and is not an objective set by OCEG guidance. Why the Other Option (“True”) Is Wrong: • It ignores the OCEG requirement to pursue “reasonable” (acceptable) assurance, not absolute assurance. • Attempting to reach zero assurance risk would demand limitless evidence-gathering, time, and cost, which the Model identifies as impractical and contrary to the principle of proportionality.

Question 9

Producing Value and Protecting Value are trade-offs. You CANNOT do both at the same time. *

Accepted Answer

False

Explanation: The statement is false. The core philosophy of the OCEG GRC Capability Model is centered on achieving "Principled Performance," which is defined as the reliable achievement of objectives while addressing uncertainty and acting with integrity. This framework posits that producing value (achieving objectives) and protecting value (addressing uncertainty and acting with integrity) are not mutually exclusive trade-offs but are two integrated and essential components of a successful, sustainable organization. Effective GRC enables an organization to balance these two aspects, making informed decisions that optimize both value creation and value protection simultaneously.

Question 10

Follow up should be restricted to the recommendations and action plan

Accepted Answer

False

Explanation: This statement is incorrect because it presents an overly restrictive view of the follow-up process. While verifying the implementation of recommendations and action plans is a critical part of follow-up, a mature GRC process requires a broader scope. Effective follow-up must also include assessing the effectiveness of the implemented actions. The goal is not simply to confirm that a task was completed, but to ensure that the underlying issue has been resolved and the associated risk has been mitigated to an acceptable level. This involves verifying outcomes, not just outputs.

Free OCEG GRCA Actual Exam Questions