PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for CA ANZ Core 2: Risk, Technology and AI

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Chartered Accountants ANZ (CA ANZ)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CA Program — Core 1: Ethics and Sustainability (CA ANZ)

Practice Questions100 questions

CA Program — Core 3: Financial Accounting and Reporting (FAR) (CA ANZ)

Practice Questions100 questions

CA Program — Core 4: Tax (Australia) (CA ANZ)

Practice Questions100 questions

CA Program — Core 4: Tax (New Zealand) (CA ANZ)

Practice Questions100 questions

CA Program — Core 5: Strategy and Business Performance (CA ANZ)

Practice Questions100 questions

CA Program — Elective: Advanced Tax (Australia) (CA ANZ)

Practice Questions100 questions
Exam Review

Key Facts: CA ANZ Core 2: Risk, Technology and AI Exam

CACC2501

Subject Code

CA ANZ Core 2 Course Description

~9 weeks

Study Period

CA ANZ CA Program

4 LOs

Learning Outcomes

CA ANZ Core 2 Course Description

COSO + ISO 31000

Risk Frameworks

CA ANZ Core 2 Course Description

100

Free Practice Questions

OpenExamPrep

Online

Delivery Mode

CA ANZ CA Program

CA ANZ Core 2: Risk, Technology and Artificial Intelligence (CACC2501) is an online Graduate Diploma of Chartered Accounting subject studied over about 9 weeks. It develops skills to recommend risk management strategies for financial and non-financial risks, evaluate and communicate data analyses, contribute to IT strategy with existing and emerging technologies (automation, blockchain, AI), and apply computational thinking and ethics. It is assessed via objective online quizzes plus a high-stakes assignment rather than one long case exam, so CA ANZ does not publish a fixed question count or raw pass mark. This free bank offers 100 conceptual practice questions across COSO ERM, ISO 31000, internal and IT controls, data governance, cybersecurity, and AI governance.

Sample CA ANZ Core 2: Risk, Technology and AI Practice Questions

Try these sample questions to review concepts for the CA ANZ Core 2: Risk, Technology and AI exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the 2017 COSO Enterprise Risk Management framework, how many interrelated components organise the framework's principles?
A.Five components
B.Eight components
C.Twenty components
D.Three components
Explanation: The 2017 COSO ERM framework, 'Enterprise Risk Management — Integrating with Strategy and Performance', is structured into five interrelated components: Governance and Culture; Strategy and Objective-Setting; Performance; Review and Revision; and Information, Communication and Reporting. These five components contain 20 supporting principles.
2ISO 31000:2018 defines risk as the effect of uncertainty on objectives. Which statement best reflects this definition?
A.Risk is the probability of fraud occurring within an organisation
B.Risk is always a negative event that causes financial loss
C.Risk is a deviation from the expected, which can be positive, negative or both
D.Risk only exists where there is a regulatory requirement to report it
Explanation: ISO 31000:2018 frames risk as the 'effect of uncertainty on objectives', and an effect is a deviation from the expected that may be positive (opportunity), negative (threat), or both. This neutral definition lets organisations pursue upside as well as manage downside.
3An organisation maps its risk management process to ISO 31000:2018. Which step immediately follows risk analysis in the ISO 31000 risk assessment sequence?
A.Risk monitoring and review
B.Risk identification
C.Risk evaluation
D.Establishing the context
Explanation: ISO 31000 risk assessment comprises three sub-steps in order: risk identification, risk analysis, then risk evaluation. Evaluation compares the analysed level of risk against risk criteria to decide whether the risk and its treatment are acceptable.
4When responding to an identified risk, a business decides to exit the activity that generates the risk entirely. Which risk response does this represent?
A.Risk acceptance
B.Risk reduction (mitigation)
C.Risk avoidance
D.Risk sharing (transfer)
Explanation: Risk avoidance means deciding not to start or to discontinue the activity that gives rise to the risk, removing the exposure entirely. It is appropriate when the risk exceeds appetite and cannot be cost-effectively reduced or shared.
5A risk register records the level of risk remaining after controls have been applied. What is this remaining level of risk called?
A.Risk velocity
B.Inherent risk
C.Residual risk
D.Risk appetite
Explanation: Residual risk is the level of risk that remains after management has implemented risk responses and controls. It is compared against risk appetite to decide whether further treatment is required.
6The 'three lines model' (formerly three lines of defence), updated by the IIA in 2020, assigns roles for governing risk. Which group typically forms the SECOND line?
A.The external auditor expressing an opinion on the financial statements
B.Operational management that owns and manages risk
C.Risk management and compliance functions that monitor and challenge
D.Internal audit providing independent assurance
Explanation: In the three lines model, the second line comprises risk management, compliance and other oversight functions that provide expertise, support and monitoring, and challenge first-line risk ownership. The first line owns and manages risk; the third line (internal audit) gives independent assurance.
7A board sets a quantified maximum loss it is prepared to absorb on a specific transaction before escalation is required. This boundary is best described as the organisation's:
A.Risk culture
B.Risk maturity
C.Risk appetite statement
D.Risk tolerance
Explanation: Risk tolerance expresses the acceptable variation, often quantified, around specific objectives or risks before action is triggered. It operationalises the broader risk appetite into measurable thresholds and limits for particular activities.
8Which of the following is best classified as a NON-financial risk for a chartered accounting firm?
A.Liquidity shortfall from delayed client payments
B.Interest rate risk on a variable-rate loan
C.Foreign exchange exposure on overseas receivables
D.Reputational damage from a data breach
Explanation: Reputational risk is a non-financial (often strategic or operational) risk; it is not measured directly in monetary cash flows even though it can cause financial loss. The CA Program Core 2 subject explicitly addresses both financial and non-financial risks.
9A risk heat map plots risks using two primary dimensions. Which two dimensions are conventionally used?
A.Cost and benefit
B.Likelihood and consequence (impact)
C.Inherent and residual control
D.Strategic and operational classification
Explanation: A risk heat map (risk matrix) plots likelihood (probability) on one axis against consequence or impact on the other, producing a colour-coded view that helps prioritise risks by severity. Risks in the high-likelihood, high-impact zone receive priority treatment.
10Within COSO ERM (2017), which component is concerned with identifying, assessing and prioritising risks and selecting risk responses as the entity executes its strategy?
A.Governance and Culture
B.Strategy and Objective-Setting
C.Performance
D.Review and Revision
Explanation: The Performance component of COSO ERM 2017 covers identifying and assessing risks that may affect strategy and objectives, prioritising them by severity, selecting risk responses, and developing a portfolio view of risk. It is where day-to-day risk-and-performance management occurs.

About the CA ANZ Core 2: Risk, Technology and AI Exam

Core 2: Risk, Technology and Artificial Intelligence (CACC2501) is a CA Program subject that develops candidates' ability to analyse how businesses create and protect stakeholder value through risk management, data and technology, and the responsible use of artificial intelligence.

Exam sponsor: Chartered Accountants Australia and New Zealand (CA ANZ). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

Roughly a 9-week study period with timed online assessments and an assignment deadline

Passing Score

Set by CA ANZ per assessment; the subject combines online assessments and an assignment, with no single public raw percentage

Exam / Certification Fees

Set per term by CA ANZ; see the official timetables, fees and enrolment page for the current Core 2 (CACC2501) fee

Exam sponsor website

Reported exam pass rate: Not published by CA ANZ. CA ANZ does not publish a Core 2 subject pass rate; outcomes depend on combined online assessment and assignment performance. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~35%

Risk Management Frameworks and Process

COSO ERM 2017 components, ISO 31000:2018 process, risk identification, assessment, appetite and tolerance, risk responses, internal controls, the three lines model, and protecting and creating stakeholder value.

~35%

Data, Technology and IT Controls

Data governance, data quality and stewardship, privacy, information systems, general and application IT controls, cybersecurity, business continuity, and technology-enabled assurance.

~30%

AI and Emerging Technology

Artificial intelligence and machine learning concepts, AI governance, responsible and ethical AI use, cloud, automation, blockchain, computational thinking, and emerging-technology risk.

Preparing for the CA ANZ Core 2: Risk, Technology and AI Exam

What You Need to Know

  • Passing score: Set by CA ANZ per assessment; the subject combines online assessments and an assignment, with no single public raw percentage
  • Assessment: Question count not published by the exam provider
  • Time limit: Roughly a 9-week study period with timed online assessments and an assignment deadline
  • Exam / certification fees: Set per term by CA ANZ; see the official timetables, fees and enrolment page for the current Core 2 (CACC2501) fee Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA ANZ Core 2: Risk, Technology and AI: Suggested Study Strategy

1Learn the COSO ERM 2017 five components and ISO 31000:2018 process steps well enough to apply them to scenarios, not just recite them.
2Practise distinguishing risk appetite, tolerance, inherent risk and residual risk, since these terms are easy to confuse under time pressure.
3Tie internal controls to the risks they address and classify them as preventive, detective or directive, including general versus application IT controls.
4Build a working vocabulary for data quality dimensions, data governance roles, and privacy obligations under the Australian Privacy Act.
5Connect AI concepts to governance: understand bias, explainability, hallucinations, human-in-the-loop, and frameworks such as ISO/IEC 42001 and the NIST AI RMF.
6Always frame answers around protecting and creating stakeholder value and applying ethical, professional judgement, which is the integrating theme of Core 2.

Frequently Asked Questions

What is CA ANZ Core 2: Risk, Technology and Artificial Intelligence?

Core 2 (subject code CACC2501) is a CA Program subject from Chartered Accountants Australia and New Zealand. It develops candidates' ability to analyse how organisations create and protect stakeholder value through risk management, data and technology, and the responsible use of artificial intelligence.

How is CA ANZ Core 2 assessed?

Core 2 is delivered online over roughly a 9-week term and assessed through objective online quizzes combined with a high-stakes assignment, rather than a single long case-only exam. CA ANZ does not publish a fixed question count or a single raw passing percentage for the subject.

What topics does Core 2 cover?

Core 2 covers enterprise risk management frameworks (such as COSO ERM and ISO 31000), risk identification and response, internal and IT controls, data governance and data quality, cybersecurity, emerging technologies including cloud, automation and blockchain, and artificial intelligence concepts, AI governance and responsible AI use.

What are the learning outcomes of Core 2?

Candidates learn to recommend risk management strategies for financial and non-financial risks, evaluate and communicate the results of data analyses, identify and evaluate existing and emerging technologies and contribute to IT strategy, and apply computational thinking to solve authentic business problems, all underpinned by ethics.

How long does Core 2 take to study?

CA ANZ delivers Core 2 over approximately a 9-week study period each term, with weekly study and timed online assessments leading to a final assignment. Candidates typically budget a sustained weekly commitment, often well over 100 hours in total across the subject.

How much does CA ANZ Core 2 cost?

Core 2 (CACC2501) is enrolled as a CA Program subject, and the fee is set by CA ANZ each term in local currency. Check the official CA ANZ timetables, fees and enrolment page for the current Core 2 subject price.

Does Core 2 cover artificial intelligence and AI governance?

Yes. Core 2 explicitly addresses artificial intelligence concepts, AI governance and the responsible, ethical use of AI in accounting, alongside related technologies such as automation and blockchain and the data governance that supports trustworthy AI.

How can I prepare for CA ANZ Core 2 for free?

OpenExamPrep offers 100 free practice questions covering risk management frameworks, internal and IT controls, data governance, cybersecurity, and AI governance. They are designed as conceptual knowledge prep to reinforce Core 2 themes before your online assessments and assignment.