IIA Certified Government Auditing Professional IIA-CFSA Questions & Answers

• Question 21:

  Close-end funds:

  A. Are not redeemable

  B. The investment portfolios generally are managed by separate entities

  C. Are permitted to invest in a greater amount of "illiquid" securities than mutual funds.

  D. All of these

  Correct Answer: D

• Question 22:

  The approximate per-share NAV plus any fees the fund imposes is the price:

  A. That investors pay to purchase mutual fund

  B. That investors receive on redemptions

  C. Per share NAV

  D. All of these

  Correct Answer: A

• Question 23:

  A UIT typically issues redeemable securities (or "units"), like a mutual fund, which means:

  A. That the UITs typically will make a one-time "public offering"

  B. A UIT does not activity trade its investment portfolio

  C. That the UIT will, buy back an investor's request at their approximate net asset value

  D. All of these

  Correct Answer: C

• Question 24:

  There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

  A. Pursuant to SEC exemptive orders

  B. Shares issued by ETFs Traded on a secondary market

  C. Are lonely redeem able in very large blocks (Blocks of 50,000 shares for example)

  D. All of these

  Correct Answer: D

• Question 25:

  If a mutual fund has an NAV of $100 million, and investors own $10,000,000 of fund's shares, the funds per share value will be:

  A. $100

  B. $1

  C. $10

  D. None of these

  Correct Answer: C

• Question 26:

  I- With reference to the granting of customer credit lines a thorough analysis of the customer's overall financial position is performed prior to trading authorization. II-confirmations of each transaction are sent to customers indicating the quantity, delivery month and the contract price to ensure the integrity of transactions. III-Original margin deposits in cash or acceptable securities to guarantee performance of contracts are determined in accordance These all are adequate procedures and controls associated with:

  A. Commodity transaction

  B. Mutual funds audit

  C. Bond audit

  D. None of these

  Correct Answer: A

• Question 27:

  Audit objectives that apply to one sales portion are all EXCEPT:

  A. Ensure that daily activity of each salesman is reviewed by head salesman

  B. Ensure that inventory is being accurately market to market on a continuing basis

  C. Ensure customer markups are reasonable relative to NASD

  D. None of these

  Correct Answer: B

• Question 28:

  Which of the following is not an audit objective of a commodity department?

  A. All customer accounts are opened and maintained in accordance with the rules and regulations commodity futures trading commission (CFTC) and the various commodity Exchanges

  B. Adequate control exist to ensure the accuracy and propriety of information contained in regulatory reports, such as the commodity futures trading commission form 1-FR, and the focus report

  C. Verify the accuracy and reporting (inventory reports, fail reports, again reports and profit and loss reports.)

  D. None of these

  Correct Answer: C

• Question 29:

  Call provisions are often part of ______________, but usually not bonds issued by ______________.

  A. Zero coupon bond, Federal Government bonds

  B. Corporate bonds, Zero coupon bonds

  C. Corporate and municipal bonds, bonds issued by Federal Government

  D. None of these

  Correct Answer: C

• Question 30:

  Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional capital.

  A. Secondary Offering

  B. IPO

  C. Private Placement

  D. Preferred Offering

  Correct Answer: A