IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 31:

  Option's in major types of life insurance is/are:

  A. May be renewable or convertible to a whole life policy (term life insurance)
  B. May pay dividends, may provide a reduced paid-up policy. Partial cash surrenders permitted (whole life insurance)
  C. May pay dividends minimum death benefit partial cash surrenders permitted
  D. All of these
  D. All of these

• Question 32:

  Other asset categories are mentioned in:

  A. Audited Balance sheet
  B. Unaudited balance sheet
  C. Balance sheet only when they are material
  D. Other books of account
  C. Balance sheet only when they are material

• Question 33:

  Cash on hand refers to:

  A. Funds in bank
  B. Funds at teller windows
  C. Funds in vault and in ATM
  D. All of these
  D. All of these

• Question 34:

  Recent turmoil in the financial markets illustrate the volatility of the secondary market for subprime loans and the significant liquidity risk incurred when originating a large volume of loans intended for: A. IPO

  B. Securitization and sale
  C. Loans
  D. All of these
  B. Securitization and sale

• Question 35:

  Exception reports generated by the lending institution are designed to identify past-due loans. Auditors should review these exception reports to identify an unusually high number of exceptions and old or unusual exceptions that might indicate that:

  A. The institution is not following up on exceptions in a timely manner
  B. The institution is following up on exceptions in a timely manner
  C. The auditor is not following up on exceptions in a timely manner
  D. The competitor is not following up on exceptions in a timely manner
  A. The institution is not following up on exceptions in a timely manner

• Question 36:

  Municipal bonds are issued by state and local governments, U.S. territories, and non-federal public agencies such as school districts, cities, and airport authorities. Municipal debt is considered the second safest form of debt security after U.S. government obligations. Some types of municipal bonds include all of the following EXCEPT:

  A. General obligation bonds
  B. Revenue bonds
  C. Single barreled bonds
  D. Moral obligation bonds
  C. Single barreled bonds

• Question 37:

  Which one of the following questions is NOT considered when claims department review the claims?

  A. Did a loss occur?
  B. Was the loss covered by the policy?
  C. Who are not the beneficiaries?
  D. How much is payable to the insured or beneficiaries?
  C. Who are not the beneficiaries?

• Question 38:

  Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for charge-offs and select a sample of charged-off loans whether they are handled properly.

  Another useful test is:

  A. To select a sample of loans that are significantly paid inorder to determine whether they meet the charge-off criteria and assess why they have not been charged off
  B. To select a sample of loans that are significantly paid in order to determine whether theymeet the past criteria and assess why they have not been charged off
  C. To select a sample of loans that are significantly paid in order to determine whether theymeet the charge-off criteria and assess why they have not been charged off
  D. To select a sample of loans that are significantly paid in order to determine whether theymeet the charge-off criteria to meet the current requirements
  A. To select a sample of loans that are significantly paid inorder to determine whether they meet the charge-off criteria and assess why they have not been charged off

• Question 39:

  Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

  A. Cash flows
  B. Liabilities
  C. Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information
  D. Liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information
  C. Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information

• Question 40:

  To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment These are the primary reasons

  A. For establishing a trust
  B. For naming an institution as trustee
  C. of Safekeeping
  D. of Custodial
  A. For establishing a trust