Free IIA-CFSA Exam Dumps Preview

Which of the following steps is/are NOT considered in the audit planning process?

The "combined ratio" of an insurance company is the ratio from combining which of the following?

The "loss ratio."
II. The "other underwriting expense ratio." III. The "expense ratio."
IV. The "IBNR."

Auditors testing mutual funds transactions will typically focus on whether customer purchases and redemptions are accounted properly. In cases where brokers are used to maintain customer accounts, auditors may need to confirm:

If investment returns are very poor, this could lead to:

Close-end funds are traded on:

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:

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:

Which one of the following is not including in typical type of insurance:

Notes and bonds are long-term debt instruments. Long-term debt instruments are sold at ______________ when the market rate _____________ the stated interest rate.

Relief from administrative details and continuity are the major reasons for:

___________ 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.

Which of the following should be the next step after the structuring process in order to complete the securitization process?

The enterprise-wide risk management approach focuses both on familiar financial risks and harder to
measure--though equally important:

__________ is a tool to transfer qualified investments from one account to another. In order to retain certain special tax treatments, funds may not be co-mingled with other types of assets, including other IRAS.

When one party trades a variable interest rate for a fixed interest rate or vice versa then __________ occurs.

The administration of personal trust accounts is primarily controlled by all of the following EXCEPT:

The term umbrella market segmentation is referred to:

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

Initially, back-office operation were created as captives of parent companies and treated as cost centers from cost centers to profit centers due to:

Which one of the following is NOT the rule of National Association of Securities Dealers (NASD)?

_________ stock generally costs more than __________ because of the additional rights its stockholders receive.

For Example one exception in 1000 cases is probably not the reason enough to recommend overhauling the entire system, although the final answer must be derived from the context and the condition of the related control system.

Which one of the following statements is clearly supported by this example?

Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulation D supports all of the following EXCEPT:

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

The primary regulatory entities of banking industry include:

All the activities, mentioned below, cause rise in interest rate EXCEPT:

The purpose of audits of financial statements is to issue an opinion on the fairness of the financial

statements and to evaluate all of the following assertions (explicit or implicit) by management EXCEPT:

One fund may invest on mostly established "blue chip" (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential
for growth. These are the examples of:

In option-type securities contracts the option's price is called:

CDs typically require a minimum deposit of at least ________ US, and often require at least ________ US.

Defined benefits & defined contribution plans and individual retirement accounts are commonly administered:

Commonly used distribution system/s in the insurance industry is/are:

Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent that the lender will buy them back at a future date. The borrower is required to return the securities to the lender, either on demand or at a specified time.
A major reason for securities lending is:

Federal Reserve Board has:

Which of the following way best defines disability insurance?

Financial services organizations are challenged to provide responsible fiduciary management while:

A major function of NAIC is to encourage __________ among state insurance departments through the development of model bills and regulations.

The scope of an audit defines the boundaries of the audit by addressing such items as the audit period or number of locations to be reviewed.. Some important considerations when defining the scope of an audit include:

Basic control/s to consider when auditing derivates strategies is/are:

Most corporations have an annual meeting where stockholders have the opportunity to vote on important issues. These issues include:

Which one of the annuities, mentioned below, is not regulated by the SEC:

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

One of the largest components of the global derivative markets and natural adjunct to the fixed income markets is the:

Which of the following best suits in place of question mark?

Which statement is correct concerning commercial letters of credit?

These are used to speculate on the direction of interest rates. The trading of these contracts is limited. The future market is the main trading market for securities based on interest-rate movements.

What are these?

Insider rule/s:

Insiders are generally barred from:

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

Universal life policies are a form of permanent life insurance that has flexible premiums, flexible face amounts, and separate pricing for the three major pricing categories.

Which of the following is/are out of those categories?

Insurance in law and economics, is a form of risk management primarily used to:

Trading securities are securities that a bank intends to sell within a short period, usually less than:

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 __________.

Leases allow a customer to use an institution's property for a specified period. Most lease agreements give the lessee the option of purchasing the property:

When the maturity date of the annuity arrives, the insurer begins making a series of payment to the annuitant over a stated period (Known as__________).

Major types of individual long-term disability policies are all EXCEPT:

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

When looking at account receivables auditors should ensure:

Back-office operations are _____________ as offshore operations which establish business entities in tax-free export zones or offshore centers.

____________ is a form of insurance, to move risk from someone major loss to someone who could absorb the loss, or is able to hedge against the risk by buying some other derivative.

At times when you have more money available, you can pay as if it were a whole life policy and accumulate cash value on a tax deferred basis. It is the advantage of:

How many member states of the European Union are participating in the single Euro Currency?

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

CAMEL is an acronym that comes from the key areas of a financial institution's safety and soundness examination. It stands for:

Which of the following would not generally be a responsibility of an underwriting department?

If a surgeon loses a hand, she may not be able to perform surgery. If she has an ____________ policy, she would be able to recover, even though she can still work as a doctor in a nonsurgical field. If she has a ____________ policy, there would be no recovery, even if the surgeon's only possible alternative is to be a tour guide.

Which one of the following audit objectives and steps should not be considered when performing an audit of deposit account?

In variable universal life (VUL) policies the maximum premium standard set was:

I- Restrict access to data by business need-to-know II-Assign Unique ID t each person with computer access III-Restrict physical access to cardholder data The above requirements of PCI (Payment Card Industry) achieve which one of the following goals?

Corporations, government entities and other organizations use banks as trustee to handle the ______________function associated with a stock or bond issue.

An entity that purchases and sells securities on its own behalf is acting as:

Risks associated with compliance with laws and regulations may actually _________ impact ________ in ________. Choose the correct set.

___________ are investment securities that do not fall under one of the other types of securities.
Examples of these are Type III securities including corporate bonds and municipal bonds.

Which one of the following is/are NOT the type of retirement plans that banks may administer?

Audit objectives that apply to one sales portion are all EXCEPT:

Internal auditing:

____________ is an electronic payment network used by individuals businesses, financial institutions and government organizations. It provide better cash management capabilities and lower costs than traditional paper payments.