IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 261:

  ____________ are the instruments with maturities of 30 years for new issues (10-to-30-years issues were allowed in the past). The amounts range from $1,000 to $1,000,000 and are sold at auction in a manner similar to that for treasury notes.

  A. Treasury notes
  B. Treasury receipts
  C. Treasury bonds
  D. Treasury bills
  C. Treasury bonds

• Question 262:

  Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

  A. Equity indices
  B. Stock exchange indices
  C. OTC market indices
  D. All of these
  A. Equity indices

• Question 263:

  As interest rate change, the price of an issued bond also changes. The change in price has an inverse relationship to changes in interest rates (if one rises, the other falls). If new bond issues are paying a higher interest rate than existing bonds, investors will not purchase existing bonds unless:

  A. The bond is discounted
  B. The new bond prices fall
  C. The new issue is finished
  D. The interest rate declines
  A. The bond is discounted

• Question 264:

  Which of the following activity/ies should be considered by the auditors whenever reviewing situations where broker-dealer finance proprietary or customer activity through collateralized bank loans?

  A. Ensuring that customer, noncustomer, and firm bank loans are separately maintained and that procedures are in place to prevent commingling of collateral
  B. Maintaining separate accounts in the general ledger for the securities collateralizing eachloan
  C. Obtaining collateral from the counterparty
  D. Reconciling the repurchase and reverse repurchase subsidiary ledgers to the stock record and general ledger daily. Out-of-balances are recorded as suspense items and researchedimmediately
  A. Ensuring that customer, noncustomer, and firm bank loans are separately maintained and that procedures are in place to prevent commingling of collateral
  B. Maintaining separate accounts in the general ledger for the securities collateralizing eachloan

• Question 265:

  Internal auditing:

  A. Is an independent, objective assurance and consulting activity designed to add value and improve anorganization's operations
  B. Is an independent, performance measurement and consulting activity designed to addValue and improve an organization's operations
  C. Helps an organization accomplish objectives by bringing a systematic, disciplinedApproach to evaluate but rarely improve the effectiveness of risk management, control and governance
  D. Helps an organization accomplish objectives by bringing a targeted, disciplined approach to evaluate but rarely improve the effectiveness of risk management, control and governance
  A. Is an independent, objective assurance and consulting activity designed to add value and improve anorganization's operations

• Question 266:

  Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:

  A. Non- Compliance with the laws, rules and regulations
  B. An event or cause that can interfere with achieving the objective (e.g. What can go wrong?)
  C. A probability or likelihood of occurrence
  D. The negative consequences of not achieving the objective
  A. Non- Compliance with the laws, rules and regulations

• Question 267:

  __________ allows businesses that sell durable goods such as automobiles to finance inventories. As the business sells goods, the loan advance against those goods is repaid.

  A. Term loans
  B. Short-term working
  C. capital loans
  D. Floor-plan financing
  D. Floor-plan financing

• Question 268:

  Which of the following is not a characteristic of a control environment?

  A. Management communicates the importance of internal controls to all employees
  B. Employees have a vague idea of their responsibilities; so they work in a flexible environment
  C. Employees are held accountable for their performance
  D. A system is in place to monitor controls on a regular basis
  B. Employees have a vague idea of their responsibilities; so they work in a flexible environment

• Question 269:

  Some of the risks associated with bond funds are all of the following EXCEPT:

  A. Credit Risk
  B. Interest Rate Risk
  C. Payment Risk
  D. Liquidity Risk
  D. Liquidity Risk

• Question 270:

  ECB performs all these tasks EXCEPT:

  A. Defining and implementing monetary policy for the euro area
  B. Conducting Foreign Exchange operations
  C. Making the Euro area's insurance rules and regulations
  D. Promoting the smooth operations of payment system
  C. Making the Euro area's insurance rules and regulations