Exam Code: IIA-CFSA (Practice Exam Latest Test Questions VCE PDF)
Exam Name: Certified Financial Services Auditor
Certification Provider: IIA
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Q16. (Topic 2)
Non-deposit investment product includes:
A. Fixed annuities
B. Variable annuities
C. Mixed annuities
D. Both A&B
Answer: D
Q17. (Topic 3)
Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:
A. Reviewing counterparties for credit worthiness and obtaining master trade agreements andcredit approval for counterparties before entering into stock-loan or stock-borrow transaction
B. Establishing transaction limits by counterparty
C. Obtaining physical possession or control of all collateral
D. Establishing position and credit limits by counterparty
Answer: D
257. (Topic 3)
Once the underwriter has reviewed all of the file documentation provided, he or she will be issued a written decision .The decision may be one of the following:
A. Approved
B. Suspended
C. Denied
D. Any one of these
Answer: D
Q18. (Topic 2)
The financial institutions’ general ledger records activity on deposit accounts. Posting of timedeposit transactions usually occurs on the day transaction occurs or the next day. The following audit objectives and steps should be considered when performing an audit of deposit accounts EXCEPT:
A. Assess the adequacy of policies, procedures, and internal controls regarding deposit accounts
B. Determine whether documentation exists to show that accounts are properly opened and closed in a timely manner and in accordance with establish policies. Ensure that applications and signature cards are on file. Send confirmations on a sample of accounts. If any confirmations are not received, compare the signature on recent checks or transactions to the signature card for the account
C. Determine whether deposit transactions and any expense is posted properly
D. Ensue that there is adequate separation of duties between the posting and reconciling functions. Recalculate a sample of reconciliations to verify accuracy. Note whether any nusual transactions were properly verified and authorized
Answer: C
Q19. (Topic 4)
If investment returns are very poor, this could lead to:
A. Down in the market share of that particular investment
B. Policy Lapsing
C. Stock exchange collapse
D. Minimum premium
Answer: B
Q20. (Topic 4)
In SEC review process, if SEC believes that the registration statement contains false or misleading information or that pertinent information has been omitted, it can suspend the process with______________.
A. Stop orders
B. Deficiency letters
C. Legal notices
D. Red herring
Answer: A
388. (Topic 4)
____________ 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.
A. EFT (Electronic Funds Transfer)
B. ACH (Automated cleaning house)
C. ATM
D. None of these
Answer: B
Q21. (Topic 5)
Personal trust accounts may be:
A. Living or testamentary
B. Revocable or irrevocable
C. Both of these
D. None of these
Answer: C
Q22. (Topic 2)
Information technology general controls set the foundation for effective control over computerized information system assets. General controls apply to the entire computer operation. Which of the following is/are NOT out of these controls?
A. Administrative controls
B. Security controls
C. Security administration
D. Input controls
Answer: D
Q23. (Topic 1)
Major categories of loans include all of the following EXCEPT:
A. Commercial loans
B. Residential loans
C. Consumer loans
D. Agricultural loans
Answer: D
Q24. (Topic 5)
Unlike trust, there is no conveyance of title to the account assets. When the ________ relationship is established; legal title to the property remains with the principal.
A. Guardianship
B. Estate Administration
C. Agency Services
D. None of these
Answer: C
Q25. (Topic 3)
All of the following are financial instrument EXCEPT:
A. Prepaid capital
B. Debt securities
C. Equity securities
D. Insurance polices
Answer: A
233. (Topic 3)
Default risk is an alternate term used for:
A. Liquidity Risk
B. Credit Risk
C. Control Activities Risk
D. Operational Risk
Answer: B
Q26. (Topic 1)
Internal auditors, engaging in activities that are illegal and discreditable to the profession of internal auditing or the organization, violate which of the following principles:
A. Objectivity
B. Awareness
C. Integrity
D. Competence
Answer: C
Q27. (Topic 1)
Compliance testing is designed primarily to: A. Hold detection risk to an acceptable level
B. Determine whether policies and procedures have been followed
C. Determine that account balances exit, are accurate, and are properly classified
D. Provide evidence about monetary misstatements
Answer: B
Q28. (Topic 5)
Some objectives of an audit related to mutual funds might include determining that:
A. Mutual fund checks are issued in accordance with firm policies and supported by valid trades
B. Mutual fund purchases are confirmed on a timely basis
C. Mutual fund switches are not authorized by the client
D. All EXCEPT “C”
Answer: D
Q29. (Topic 4)
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
Answer: A
Q30. (Topic 2)
The reliability (competence) of evidence gathered by auditors is a __________. The reliability of evidence is a key factor in the audit analysis. Relevance is also a key factor in determining the quality of evidence.
A. Fixed term
B. Variable
C. Determinant
D. Subjective philosophy
Answer: B