IIA-CFSA Online Practice Questions and Answers

The plans developed for the audit functions should be updated as circumstances dictate. Such specific types of plans include all EXCEPT:

A. Activity Reports

B. Target dates

C. Opportunities and threats

D. Staffing plans and financial budgets

The main purposes of the audit survey are to assist with following goals and tasks EXCEPT:

A. Develop preliminary estimates of time and resource requirements

B. Determine whether further auditing is necessary

C. Documenting key control activities

D. Identify potential critical control points, control deficiencies or excessive controls

Non-deposit investment product includes:

A. Fixed annuities

B. Variable annuities

C. Mixed annuities

D. Both AandB

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

A. Mark up

B. Premium

C. Return value

D. Both AandB

Bond yield is the return on a bond. Which of the following terms may apply to bond yields?

A. Nominal yield

B. Market yield

C. Yield to Maturity

D. Both A and C

Most municipal and corporate bonds are rated by an independent rating firm such as Standard and Poor's (SandP) or Moody's. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.

A. Investment grade bonds

B. Speculative bonds

C. Junk bonds

D. Blue chip bonds

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

A. Agreement

B. Periodic review

C. Competent parties

D. Legal purpose

It is a characteristic of insurance policy according to which the insured decides whether or not to pay the premium to be covered by the policy. If the insured pays the premium, the insurance coma pay is obliged to make payments as stated in the policy. What is it?

A. Unilateral

B. Bilateral

C. Incontestable

D. Adhesion

Whole life policies accrue a cash value that the insurer must surrender to the policyholder if the policy does not remain in force until the policyholder's death. The actual cash value payable to the policyholder in this circumstance would be:

A. Plus any surrender charges

B. Less any surrender charges

C. Plus policy repayments outstanding

D. Less any surrender charges and policy repayments outstanding

Underwriting decisions are more influenced by what underwriters think they can sell to the public than _____________.

A. Quality of the company

B. Judgment in picking the IPO

C. Estimated profit/gains

D. Both AandC

Some specific requirement of securities Exchange Act of 1934 are all of the following EXCEPT:

A. Credit Regulations

B. Manipulation and Deception

C. Insider rules

D. Articles of incorporation

Residential loans are usually secured by all EXCEPT: A. Mortgages

B. Current Assets

C. Deed of truest

D. Land contracts

Commercial banks create money by:

A. Making loans

B. Selling government bonds to the public

C. Placing reserves at the Federal Reserve Bank.

D. Repurchasing their stock on the open market.

A sound Asset/Liability management policy must manage following risk EXCEPT:

A. Credit Risk

B. Capital Risk

C. Interest-Rate risk

D. None of these

The objective/s of a trust department audit is/ are to:

A. Detect and prevent irregularities such as errors and fraud

B. Access adequacy of accounting, operating, and administrative controls and procedures

C. Determine the quantity of account administration

D. all of the above