Consequences of Non-Compliance CT-FT Practice Questions (Page 5)

Questions 21–23

1. 21foundation · easy

   What is a potential consequence of non-compliance with internal financial policies?

   • ALower audit frequency
   • BEnhanced data accuracy
   • CHigher customer satisfaction
   • DEmployee disciplinary action
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A fintech startup fails to comply with a regulation requiring that all customer data be stored within the country of operation. The startup's servers are located abroad. Which consequence is most directly a legal consequence?

   • AThe startup must pay for additional server capacity in the country.
   • BThe startup's IT team must migrate data to new servers.
   • CThe startup faces a lawsuit from a customer whose data was exposed.
   • DThe startup loses customer trust and sees a drop in new accounts.
   Reveal Solution Discussion Select an answer first
3. 23expert · hard

   A compliance testing team is assessing the risk of non-compliance in a system that handles customer investment portfolios. They have identified two potential issues: (1) a failure to rebalance portfolios according to the customer's risk profile, and (2) a failure to send required trade confirmations to customers. The team has limited resources and must decide which to test first. Which approach best aligns with risk-based testing?

   • ATest both issues equally because both are compliance requirements.
   • BPrioritize issue 2 because it is easier to test.
   • CPrioritize issue 2 because trade confirmations are required by regulation.
   • DPrioritize issue 1 because it could lead to significant financial losses for customers and regulatory action.
   Reveal Solution Discussion Select an answer first