Control Patrol
Having two employees present when accessing a cash vault is an example of this.
Dual control
This department serves as the third line of defense against fraud
Internal Audit (Provides independent assurance by evaluating whether risk management and internal controls are operating effectively)
1st Line - Management & Operations (Own and manage risks)
2nd Line - Risk and Compliance (Monitor and oversee risk management)
The risk of loss due to a member’s non-payment of a loan
Credit Risk
In 1970, this independent supervisory agency was created for federal credit unions
NCUA
How many branch offices does Consumers currently have?
34
What is the primary purpose of reconciliations?
A. Ensure transactions are processed efficiently and timely
B. Confirm that all required approvals have been obtained
C. Identifying discrepancies between records and actual balances
D. Monitoring trends to support decision-making
C. Identifying discrepancies between records and actual balances
This principle requires auditors to remain free from bias, conflicts of interest, and undue influence
Independence
This risk is the failure to enact appropriate policies, procedures, or controls to ensure the CU conforms to laws, regulations, contractual agreements, and other legally binding agreements and requirements
Compliance Risk
This individual is credited with founding the first North American credit union
A. Edward Filene
B. Roy Bergengren
C. Alphonse Desjardins
D. Pierre Jay
C. Alphonse Desjardins
Quebec, 1900
What year was the credit union founded?
1951
What is considered to be the most effective employee fraud prevention control?
A. Segregation of duties
B. Fraud awareness training
C. Transaction monitoring
D. Ethics Hotline
A. Segregation of duties
Which document formally defines the purpose, authority, and responsibility of the internal audit function?
A. Internal Audit Plan
B. Risk Assessment
C. Internal Audit Charter
D. The Audit Report
C. Internal Audit Charter
This is the risk that negative publicity regarding the CU's business practices will lead to a loss of revenue or litigation
Reputational Risk
This U.S. president signed the Federal Credit Union Act into law in 1934
Franklin D. Roosevelt
In 2015, Consumers was the first CU in Michigan to offer which widely used mobile service?
Apple Pay
What is the primary purpose of Internal Audit?
A. Ensure regulatory compliance
B. Assess risk and controls
C. Create policies and procedures
D. Prevent employee fraud
B. Assess risk and controls
Which is NOT one of the 4 core principles in the IIA’s Code of Ethics:
A. Integrity
B. Objectivity
C. Confidentiality
D. Competency
E. Accountability
E. Accountability
The financial risk due to the CU’s inability to meet it’s cash needs
Liquidity Risk
This philosophy is considered the foundation of the credit union movement
"People Helping People"
What are Consumers' core values?
Be genuine
Be passionate
Be purposeful
Be the solution
Be a servant leader
Which of these is NOT one of the 4 primary types of internal controls:
A. Directive
B. Protective
C. Detective
D. Corrective
E. Preventative
B. Protective
What are the 3 components of the fraud triangle?
• Pressure/Incentive
• Opportunity
• Rationalization
The risk that poor business decisions or improper implementation of strategic goals will reduce earnings and net worth of the Credit Union
Strategic Risk
Which institution was the first credit union in the US?
A. St. Mary’s Bank
B. La Caisse Populaire Ste-Marie
C. Navy Federal CU
D. Pentagon Federal CU
St. Mary’s Bank of Manchester
New Hampshire, founded in 1908, by a French-Canadian church for it’s mill workers
What was the original name of Consumers credit union?
Kalamazoo Consumers Power Company Employees Federal Credit Union (KCPC)
to Southwestern Michigan Utilities Employee Credit Union in 1980
to Consumers in 1987