IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 321:

  Which one of the following statements elaborates some insurance products that fall under the regulatory authority of SEC?

  A. Investment based insurance products
  B. Agents selling investment based insurance products
  C. Term insurance products
  D. Only AandB
  D. Only AandB

• Question 322:

  Low-risk scores are those with an average of scores:

  A. 2.25 or less
  B. 2.75 or less
  C. 2.00 or less
  D. 3.25 or less
  A. 2.25 or less

• Question 323:

  "Ongoing monitoring activities are conducted to periodically reassess risk and the effectiveness of control risk," is an objective of:

  A. Risk Identification
  B. Risk Measurement
  C. Risk Management Process
  D. Risk Prioritization
  C. Risk Management Process

• Question 324:

  Following elements should be documented in the audit scope EXCEPT:

  A. Time period to be covered by audit tests
  B. Available data:No. of recordsLocationsNeed to create dataFormReliability
  C. Prioritizing risks
  D. Both A and B
  D. Both A and B

• Question 325:

  Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the ___________, which generally involves trading between large institutions such as banks and corporations.

  A. Secondary security market
  B. Interbank market
  C. Over the counter market
  D. Dealers market
  B. Interbank market

• Question 326:

  Asset-based financing involves loans that are secured by the borrower's:

  A. Fixed assets
  B. mortgages
  C. Current assets
  D. All of these
  C. Current assets

• Question 327:

  Commercial banks create money by:

  A. Making loans
  B. Selling government bonds to the public
  C. Placing reserves at the Federal Reserve Bank.
  D. Repurchasing their stock on the open market.
  A. Making loans

• Question 328:

  Auditors must use professional judgment to determine the impact a risk factor may have on the use off audit resources. Risk can be controlled by various preventive measures such as:

  A. Adding personnel to a function
  B. Installing burglar alarms
  C. Increasing the frequency and level of management review implement tighter standards
  D. All of these
  D. All of these

• Question 329:

  ___________ are a type of mutual funds that is required by law to invest in highly liquid and low-risk securities such as certificates of deposits or government securities. These funds pay dividends that generally reflect short-term interest rates and are not federally insured. Due to low-risk nature of the investments, these funds rarely lose money.

  A. Money market funds
  B. Trust funds
  C. Collateral funds
  D. Index funds
  A. Money market funds

• Question 330:

  IF a securitization transaction meets FAS 125 sale or servicing criteria, the seller must recognize any gain or loss on the sale of the pool immediately and carry any retained interests in the assets sold ( including servicing rights/obligation and interest-only strips) at ____________.

  A. Principal value
  B. Fair value
  C. Premium Amount
  D. Both AandC
  B. Fair value