Certified Government Auditing Professional (CGAP) Practice Exam

Which statement about the Risk Management and Governance (RMG) framework is not true?

1. The three RMG categories of objectives differ completely from those in COSO

2. Under the RMG framework, control is seen as limited to just a very few elements of an organization

3. The ultimate responsibility for control is with the governing board

4. The RMG framework will be replaced by CICA's Criteria of Control (CoCo)

The correct answer is: The RMG framework will be replaced by CICA's Criteria of Control (CoCo)

The statement indicating that the RMG framework will be replaced by CICA's Criteria of Control (CoCo) is not true because the RMG framework and CoCo address different areas and serve different purposes within governance and risk management. While both frameworks are important in their respective contexts, they are not designed to replace one another; rather, they provide complementary perspectives on risk and control. The RMG framework emphasizes a broader range of governance and risk management principles, while CoCo specifically focuses on control criteria within organizations. This distinction underlines the framework’s ongoing relevance in the landscape of governance and risk management standards. Additionally, it’s vital to understand that the RMG framework assesses governance in a way that integrates risk management strategically, rather than suggesting that one framework will supplant another in practice. This understanding emphasizes the importance of recognizing the ongoing role of different frameworks in shaping effective governance and control systems.