IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 11:

  Auditors testing mutual funds transactions will typically focus on whether customer purchases and redemptions are accounted properly. In cases where brokers are used to maintain customer accounts, auditors may need to confirm:

  A. The number of shares held by the broker
  B. The number of shares held by the dealer
  C. The number of shares held by the shareholder itself
  D. The number of shares held by the mutual fund
  A. The number of shares held by the broker

• Question 12:

  Which of the following would not generally be a responsibility of an underwriting department?

  A. Helping policy owners with requests for information, interpreting policy language,answering questions regarding policy coverage
  B. Verifying that the mortality/morbidity rates of the company's insurers do not exceed the rates assumed when the premiums were calculated
  C. Considering the applicant's age, weight, physical condition, personal/family history, andother factors to determine the degree of risk
  D. Negotiating and managing reinsurance agreements.
  A. Helping policy owners with requests for information, interpreting policy language,answering questions regarding policy coverage

• Question 13:

  _____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.

  A. Installment loans
  B. Consumer loans
  C. Residential loans
  D. Asset-based loans
  A. Installment loans

• Question 14:

  The auditor should plan an audit with an attitude of: A. Professional competence

  B. Professional skepticism
  C. Subject awareness
  D. Opinion sharing
  B. Professional skepticism

• Question 15:

  Securities products include:

  1.

  Trusts

  2.

  Annuities

  3.

  Derivatives

  4.

  Stocks

  5.

  Bonds

  6.

  Commodities

  7.

  Mutual Funds

  8.

  Pension Funds

  9.

  Term Loans

  10.

  Asset Management

  11.

  Money Market Products

  A. Only 1, 2, 3,4,5,10,11
  B. Only 1, 3, 5, 10
  C. All except 8, 9
  D. All except 8,9,10
  C. All except 8, 9

• Question 16:

  Risks associated with compliance with laws and regulations may actually _________ impact ________ in ________. Choose the correct set.

  A. Positively, agencies, long term
  B. negatively, goals, short term
  C. negatively, institutions, short term
  D. None of these
  B. negatively, goals, short term

• Question 17:

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

• Question 18:

  Homeowner policies combine property and casualty coverage into the same policy (known as multi- line policies). Homeowner policies provide four types of property coverage. All of the following are out of those EXCEPT:

  A. Dwelling
  B. Personal property
  C. Loss of use
  D. Medical coverage
  D. Medical coverage

• Question 19:

  All of the following are financial instrument EXCEPT:

  A. Prepaid capital
  B. Debt securities
  C. Equity securities
  D. Insurance polices
  A. Prepaid capital

• Question 20:

  Risk assessment may be:

  A. Quantitative only
  B. Qualitative only
  C. Both AandB
  D. Qualitative in general and quantitative in specific
  C. Both AandB