IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 111:

  CAMEL is an acronym that comes from the key areas of a financial institution's safety and soundness examination. It stands for:

  A. Capital adequacy, Asset Quality, Management, Earning and Liquidity
  B. Credit Rating, Asset management, Employee turnover and liabilities
  C. Capital adequacy, Asset management, Earning and liabilities
  D. None of these
  A. Capital adequacy, Asset Quality, Management, Earning and Liquidity

• Question 112:

  Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:

  A. Reviewing counterparties for credit worthiness and obtaining master trade agreements andcredit approval for counterparties before entering into stock-loan or stock-borrow transaction
  B. Establishing transaction limits by counterparty
  C. Obtaining physical possession or control of all collateral
  D. Establishing position and credit limits by counterparty
  D. Establishing position and credit limits by counterparty

• Question 113:

  General liability insurance covers the major liability exposure of a business, including lawsuits against an organization's facilities or products. General liability insurance does not cover:

  A. Liabilities that a business incurs through the use of its automobiles
  B. Liabilities that a business incurs through the use of its labor and machinery
  C. Liabilities that a business incurs through the use of its land and other capital products
  D. All of these
  A. Liabilities that a business incurs through the use of its automobiles

• Question 114:

  All of these are disadvantages of mutual funds EXCEPT:

  A. Cost despite negative returns
  B. Liquidity
  C. Lack of control
  D. Price uncertainty
  B. Liquidity

• Question 115:

  Internal audit routinely reviews compliance risk and also should be reviewing business risk. The efforts to control both risk types will purely enhance:

  A. The short-term profitability and viability of an organization
  B. The long-term profitability and viability of an organization
  C. Both short-term and long-term profitability and viability of an organization
  D. None of these
  C. Both short-term and long-term profitability and viability of an organization

• Question 116:

  Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE: A. Correlation between market movement can vary (especially during periods of stress in themarket)

  B. The changes in present values are not perfectly linearly related to changes market rates.
  C. The use of one day horizon does not fully capture the market risk of positions that cannot be liquidated in one day.
  D. All of these
  D. All of these

• Question 117:

  When the maturity date of the annuity arrives, the insurer begins making a series of payment to the annuitant over a stated period (Known as__________).

  A. Accumulation period
  B. Lump-sum payment period
  C. Payment release period
  D. Pay-out period
  D. Pay-out period

• Question 118:

  Major categories of loans include all of the following EXCEPT:

  A. Commercial loans
  B. Residential loans
  C. Consumer loans
  D. Agricultural loans
  D. Agricultural loans

• Question 119:

  Insurance companies decide on a _________ whether an investigation is necessary

  A. Claims review basis
  B. Case-by-Case basis
  C. Claim investigation basis
  D. All of these
  B. Case-by-Case basis

• Question 120:

  Annuities provide the annuitants with ________________.

  A. Tax-deferred earnings
  B. Tax-accrued earnings
  C. Tax-free earnings
  D. Maximum level of earnings
  A. Tax-deferred earnings