IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 131:

  "Audit management must decide whether to sample (judgment or statistical) or use the entire universe, and which specific quantitative and qualitative methodologies will provide sufficient, competent and relevant evidence to answer the questions posed in the audit objectives." It is an example of:

  A. Determining appropriate audit methods and strategies
  B. Determining resources needed to conduct the audit
  C. Determining audit scope
  D. None of these
  A. Determining appropriate audit methods and strategies

• Question 132:

  Which of the following is NOT the requirement of Exempt Securities Act?

  A. Non-Profit groups
  B. Private placement
  C. Fees for underwriter of the issue.
  D. fixed annuity contracts and insurance policies.
  C. Fees for underwriter of the issue.

• Question 133:

  The time that a new group member must wait before becoming eligible to enroll in a group insurance plan is known as the:

  A. Actively-at-work provision
  B. Probationary period
  C. Eligible period
  D. Enrollment period
  B. Probationary period

• Question 134:

  An organization might decide that the risk of fire is high so it will pay a high premium on its fire insurance policy to transfer the risk as much as possible. However, the organization will still have to pay deductible amount on the policy if a fire occurs. This scenario depicts:

  A. Assessment of the likelihood that a given risk will occur
  B. Control the risk
  C. Accept the risk
  D. Transfer the risk
  C. Accept the risk

• Question 135:

  The trustee is responsible for producing a schedule of distribution which includes information as:

  A. Assets and their current fair market value
  B. The method of distribution
  C. Each beneficiary's share of assets and the trust's liability
  D. All of these
  D. All of these

• Question 136:

  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
  D. All of these

• Question 137:

  In a price risk situation if customers withdraw their applications a bank may be unable to originate enough loans to meet its forward sales commitments .Because of this kind of "Fallout" a bank may have to purchase additional loans in the secondary market at prices higher than anticipated. Alternatively, a bank may choose to liquidate its commitment to sell and deliver mortgages by paying a fee to the counterparty commonly called a ______________.

  A. Settlement
  B. Pair-off arrangement
  C. End of loan settlement
  D. None of these
  B. Pair-off arrangement

• Question 138:

  Audits of foreign exchange transactions may include of the following objectives and tasks EXCEPT:

  A. Determine whether internal controls over the authorization of transaction are adequate
  B. Determine whether the valuation of transactions is properly calculated
  C. Determine whether net assets, dividends, interest, and taxes are properly calculated and recorded
  D. Determine that transactions are properly recorded on cash flow statement
  D. Determine that transactions are properly recorded on cash flow statement

• Question 139:

  Which one of the following is not commonly granted trustee's powers?

  A. Pertaining to the retention, purchase and sale of assets
  B. Those pertaining to distributions of principal
  C. Those pertaining to make dealings
  D. None of these
  C. Those pertaining to make dealings

• Question 140:

  Employee benefits are generally considered non-wage compensations designed to enhance any employee's salary compensation. However, it should be noted that payroll is one of the largest operating expense in many banks. Losses can

  occur if a bank does not have adequate controls over this function.

  The largest risk/s bank face in this function is/are:

  A. Making salary payments to employees no longer on the payroll
  B. Paying employees for unearned overtime, sick time, or vacation time
  C. Entering improper or unauthorized salary
  D. All of these
  D. All of these