Exam Code: IIA-CFSA (Practice Exam Latest Test Questions VCE PDF)
Exam Name: Certified Financial Services Auditor
Certification Provider: IIA
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Q166. (Topic 3)
Basel Accord II's addition to key factors that an organization encounters is:
A. Credit Risk
B. Market Risk
C. Operational Risk
D. Liquidity Risk
Answer: C
Q167. (Topic 5)
Recent activities in the marketplace have caused your company to comply with requests
from 50 percent of your policyholders to cancel their policies. The company complies and refunds them amounts due. Your audit of this should ensure these refunds were charged against what account?
A. Incurred but not reported (IBNR)
B. Unearned premium reserve
C. Goodwill
D. Allocation for uncollectible accounts
Answer: B
Q168. (Topic 5)
Audit objectives that apply to one sales portion are all EXCEPT:
A. Ensure that daily activity of each salesman is reviewed by head salesman
B. Ensure that inventory is being accurately market to market on a continuing basis
C. Ensure customer markups are reasonable relative to NASD
D. None of these
Answer: B
Q169. (Topic 5)
Which of the following are duties of insurance commissioners in regulating insurers?
I. Rule of the constitutionality of insurance law.
II. Determine if an insurer meets the requirements to obtain a license.
III. Render decisions on the meaning of policy terms.
IV.
Conduct financial investigations of insurers operating in the state.
A.
I and II only
B.
I and III only
C.
II and IV only
D.
I, II, and III.
Answer: C
466. (Topic 5)
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:
A. Mutual funds
B. Index funds
C. Stock funds
D. Bond funds
Answer: C
Q170. (Topic 2)
Continuous monitoring in systems and networks is a by-product of the increasing demand for immediate and continuous access to reliable information. Advancements in information monitoring and analysis are being accelerated both by increasing demands for timely and accurate information and by advances in technology that contribute to the:
A. Intelligence
B. Capabilities
C. Timeliness of evaluating system
D. Both A & B
Answer: D
Q171. (Topic 1)
Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:
A. Non- Compliance with the laws, rules and regulations
B. An event or cause that can interfere with achieving the objective (e.g. What can go wrong?)
C. A probability or likelihood of occurrence
D. The negative consequences of not achieving the objective
Answer: A
Q172. (Topic 3)
The most common index funds tries to tracks the S&P 500 by purchasing all 500 stocks using the same percentage as the index. Other indices that mutual funds try to copy include all of the following EXCEPT:
A. Russell 2000
B. Wilshire 5000
C. MCSI-EAFE
D. None of these
Answer: D
Q173. (Topic 5)
Which of the following way best defines disability insurance?
A. General-disability insurance: Provides benefits to a person who cannot perform any job that the person is qualified for because of sickness or injury. As long as the policyholder can still perform certain jobs that she is qualified for, she cannot recover
B. Occupational-disability insurance: Provides benefits to a person who cannot perform his or her regular job because of sickness or injury
C. Conditionally renewable policies: And your coverage can be cancelled in the event certain conditions stated in the policy aretriggered
D. Only A&B
Answer: D
Q174. (Topic 5)
Which of the following is least expensive form of life coverage, at least initially?
A. Variable life insurance
B. Whole life insurance
C. Term life insurance
D. Permanent life insurance
Answer: C
Q175. (Topic 3)
For example, $50,000 five-year policy might decrease to $40,000 in benefits payable the second year, to $30,000 the third year, to $20,000 the fourth year, and to $10,000 in the final year. This is an example of:
A. Level term insurance policies
B. Decreasing term life insurance policies
C. Modified premium whole life policies
D. First-to-die policies
Answer: B
Q176. (Topic 5)
Traditionally, insurance is paid:
A. Continually, meaning that an even amount accrues during the period of insurance coverage
B. In periodic payments
C. With a whole sum in the start and continuous
D. None of these
Answer: A
Q177. (Topic 5)
Standard and poor’s 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:
A. Equity indices
B. Stock exchange indices
C. OTC market indices
D. All of these
Answer: A
Q178. (Topic 5)
The “combined ratio” of an insurance company is the ratio from combining which of the following?
I. The “loss ratio.”
II. The “other underwriting expense ratio.”
III. The “expense ratio.”
IV.
The “IBNR.”
A.
I and II only.
B.
I and II only.
C.
III and IV only.
D.
I, II, III and IV.
Answer: B
Q179. (Topic 2)
In option- type securities contracts the option’s price is called:
A. Mark up
B. Premium
C. Return value
D. Both A&B
Answer: B
Q180. (Topic 4)
A major type of personal selling distribution system is the:
A. Direct response distribution
B. Face to face representation
C. Ordinary agency system or career agency system
D. Agency-building distribution
Answer: D