IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 191:

  Basic control/s to consider when auditing derivates strategies is/are:

  A. "Created" Reports
  B. Risk or position limits
  C. Highly volatile markets or illiquid markets
  D. Board-approved guidelines
  D. Board-approved guidelines

• Question 192:

  Which of the following statements is NOT related to competency principle of internal auditing? Internal auditors:

  A. Shall continually improve their proficiency and effectiveness and quality of their services
  B. Shall perform internal auditing services in accordance with the standards for the professional practice of internal auditing
  C. Shall engage only in those services for which they have the necessary knowledge, skills and experience
  D. Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review
  D. Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review

• Question 193:

  Pension Benefit Guarantee Corporation (PBGC) insures "Defined benefit plan", so employees assume _____________ for any option they contribute.

  A. Low Investment Risk
  B. High Investment Risk
  C. No Investment Risk
  D. Stable Investment Risk
  C. No Investment Risk

• Question 194:

  Selectively increasing the price of a mortgages loan above the bank's established rate to certain customers ("overages") may have the effect of discriminating against those customers .This practice left undetected and not properly controlled may raise the possibility of:

  A. Reputation risk
  B. Price risk
  C. litigation or regulatory action (compliance Risk)
  D. Strategic Risk
  C. litigation or regulatory action (compliance Risk)

• Question 195:

  Charitable trust that is an irrevocable trust and that may be testamentary or inter-vivos (Between living persons) is called:

  A. Foundations
  B. Charitable Remainder Unitrust
  C. Charitable Remainder Annuity Trust
  D. None of these
  D. None of these

• Question 196:

  Which one of the following is NOT the rule of National Association of Securities Dealers (NASD)?

  A. All correspondence and all transactions must be reviewed and approved by the firm and maintained for three years.
  B. Disciplinary actions regarding employees must be reported to NASD.
  C. Firms do not need to maintain fidelity bond to protect against losses due to theft or misappropriation of securities
  D. None of these.
  C. Firms do not need to maintain fidelity bond to protect against losses due to theft or misappropriation of securities

• Question 197:

  Which of the following is/ are the responsibility /ies of state insurance commission:

  A. Making the State's insurance rules and regulations
  B. Authorizing companies to operate in the state through the issuance rules and regulations
  C. Authorizing companies to operate in the state through the issuance of licenses andcertificates of authority
  D. Both of these
  E. None of these
  C. Authorizing companies to operate in the state through the issuance of licenses andcertificates of authority

• Question 198:

  Obtaining feedback from client management throughout the audit is encouraged in order to ensure that appropriate information is being obtained and to alleviate problems at the conclusions of the audit. Some specific components of continual communication to consider include:

  A. Keep client management informed of audit issues and concerns as they arise.
  B. Submit a draft audit report ensure that accurate and appropriate information has beenreported
  C. Advise client management of projected audit days and weeks
  D. Both A and B
  D. Both A and B

• Question 199:

  Surrender charges usually apply only if the annuity has been in free:

  A. For a year
  B. For a maximum period of time
  C. For a minimum period of time
  D. For less than a year
  C. For a minimum period of time

• Question 200:

  Universal life policies are a form of permanent life insurance that has flexible premiums, flexible face amounts, and separate pricing for the three major pricing categories. Which of the following is/are out of those categories?

  A. Mortality charges based on the insurer's risk classification
  B. Internet rate paid on the cash value
  C. Expenses associated with administering the policy
  D. All of these
  D. All of these