IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 451:

  Which one of the following dominates the banking industry?

  A. Savings Banks
  B. Commercial banks
  C. Credit Unions
  D. Mortgage Bankers
  B. Commercial banks

• Question 452:

  _________ are future economic benefits controlled by an entity.

  A. Stocks
  B. Assets
  C. Equity
  D. None of these
  B. Assets

• Question 453:

  Types of barrowed funds include all EXCEPT:

  A. Rollover funds
  B. Debentures
  C. Discounting or Advancing through counts with a federal bank
  D. Mortgage payable
  A. Rollover funds

• Question 454:

  Asset/liability management is a planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve a desired spread. A sound ALM policy must manage many types of risks such as:

  A. Credit risk
  B. Liquidity risk
  C. Capital risk
  D. All of these
  D. All of these

• Question 455:

  Securities available for sale should be reported at current market value. When this type of security has an unrealized gain or loss:

  A. It is reported on balance sheet
  B. It is reported on income statement
  C. It is not reported on income statement
  D. It is reported on cash flow statement
  C. It is not reported on income statement

• Question 456:

  A manufacturer wants to protect the company from financial loss resulting from third-party lawsuits. The manufacturer has learned of several recent jury awards over $7 million for product defects. The manufacturer currently has only $5 million in this type of coverage. The manufacturer has also learned that several automobile claims have been recently awarded against other company's cars in accidents over $1 million. The manufacturer has damaged his competition and the manufacturer wants to protect his company further than the current policy allows. What insurance coverage product will the manufacturer likely buy?

  A. A personal injury protection (PIP) policy to protect others from personal injury
  B. An umbrella policy to place a protective umbrella over existing coverage.
  C. A surplus lines policy to protect against claims in surplus of the policy limits.
  D. A floater policy to float coverage where needed.
  B. An umbrella policy to place a protective umbrella over existing coverage.

• Question 457:

  Securities are divided into five categories. Type I securities are also known as:

  A. Bank eligible securities
  B. Stable obligations
  C. Mortgage related securities
  D. Marketable investment grade securities
  A. Bank eligible securities

• Question 458:

  At the end of the day all funds in a non-interest bearing checking account are cleared out and moved into a short-term investment account overnight. At the beginning of the next day, those funds are put back into the regular account for use that day. Such accounts are called:

  A. Zero-balance accounts
  B. Sweep Accounts
  C. Lock Boxes
  D. None of these
  B. Sweep Accounts

• Question 459:

  In utilization management, utilization reviews begin with a preadmission certification. In such situations, insureds must make notification within 48 hours of admission or face reduced or lost benefits. Utilization reviewers monitor the appropriateness of care while a patient is hospitalized. This is known as:

  A. Formal review
  B. UR primary activity
  C. Preadmission certification
  D. Concurrent review
  D. Concurrent review

• Question 460:

  Continuous auditing is a method used to automatically perform control and risk assessment more frequently. Technology is the key to enable such an approach. Continuous auditing changes the audit paradigm from periodic reviews of a sample to ongoing audit testing of ______ percent of transactions.

  A. Ninety
  B. Ninety nine
  C. Seventy
  D. Hundred
  D. Hundred