IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 441:

  There may be instances of massive losses, in case of derivatives, most notably by __________________, these have not had repercussions.

  A. Long-Term Capital Management
  B. Short term capital Management
  C. Capital Management
  D. Risk and investment Management
  A. Long-Term Capital Management

• Question 442:

  A UIT typically issues redeemable securities (or "units"), like a mutual fund, which means:

  A. That the UITs typically will make a one-time "public offering"
  B. A UIT does not activity trade its investment portfolio
  C. That the UIT will, buy back an investor's request at their approximate net asset value
  D. All of these
  C. That the UIT will, buy back an investor's request at their approximate net asset value

• Question 443:

  Following is a list of background items auditors should review to determine their impact on audit objectives EXCEPT:

  A. The history of the program or entire organization
  B. Results of prior audits and their working papers
  C. Applicable laws, rules and regulations. Specific items usually set forth in laws and regulations include the following: What the program is supposed to do? Who is supposed to do it?How much can be spent on what?
  D. Audit methods, strategies, tests, analysis and comparisons
  D. Audit methods, strategies, tests, analysis and comparisons

• Question 444:

  Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining collateral from the counterparty Marking to market all collateral daily; if a deficit (within established guidelines) exists, additional collateral may be obtained from the counterparty 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 researched immediately These are actually:

  A. Control and monitoring activities related to purchase and reverse purchase agreement
  B. Review activities where broker-dealer dealers finance proprietary or customer activitythrough collateralized bank
  C. Auditors should be aware of the following control and monitoring activities typicallyassociated with securities lending
  D. None of these
  A. Control and monitoring activities related to purchase and reverse purchase agreement

• Question 445:

  Insurance products yield _________ compared to regular investment option and this is besides the added incentives (read bonuses) offered by insurers.

  A. More
  B. Less
  C. Almost the same
  D. It depends
  A. More

• Question 446:

  Derivatives can be:

  A. Exchange traded securities
  B. Exchange traded options
  C. Over-the-counter traded securities
  D. Either A or C
  D. Either A or C

• Question 447:

  Common type/s of installment loans is/are:

  A. Credit card loans
  B. Residential loans
  C. Mortgage loans
  D. All of these
  C. Mortgage loans

• Question 448:

  A trust agreement is called:

  A. Trust paper
  B. Trust agreement document
  C. Both of these
  D. None of these
  D. None of these

• Question 449:

  Trust departments provide services to publicly held companies related to issuing and maintaining:

  A. Stock transactions
  B. Stock balances
  C. Stock threshold
  D. None off these
  A. Stock transactions

• Question 450:

  A bond currently priced at $1,250 with a 10% nominal yield of $100 would have a current field of _____________. The same bond priced at $800 would have a current yield of __________.

  A. 9%, 12.5%
  B. 12.5%, 9%
  C. 8%, 12.5%
  D. 12.5%, 8%
  C. 8%, 12.5%