IIA-CFSA Exam Dumps - Certified Financial Services Auditor
Internal audit routinely reviews compliance risk and also should be reviewing business risk. The efforts to control both risk types will purely enhance:
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:
The responsibility for preparing and presenting the audited financial statements is that of:
Money market funds bond funds (also called “fixed income†funds) , and stock funds (also called equity funds) are the categories of:
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:
“An element of information, from a transaction to an entire system, is appropriately entered, developed, changed, or used with proper authority.†Which of the following element of integrity supports this statement?
Banks generally record securities transactions as of trade date. However, it is acceptable to record the transactions as of the _________ if the difference between the settlement date and trade date is not materially different.
Options are quoted daily in the newspapers. The listing provides the name of the underlying stock and its closing price that day, the strike price of the option, the closing prices(premiums) of the 3 call and 3 put contracts trading closest to expiration. Listings can be divided into categories. Which of the following is/are out of those categories?
“An incoming wire transfer with instruction to pay the beneficiary upon presentment of proper identification. The beneficiary usually does not maintain a checking or savings account with the paying financial institution.†This definition refers to:
__________ allows businesses that sell durable goods such as automobiles to finance inventories. As the business sells goods, the loan advance against those goods is repaid.
Asset-based financing involves loans that are secured by the borrower’s:
If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?
In variable universal life (VUL) policies the maximum premium standard set was:
The mission of the NAIC is to assist State Insurance regulators, individually and collectively, in serving the public interest and achieving all the following fundamental insurance regulatory goals in a responsive, efficient and cost effective manner, consistent with the wishes of its members EXCEPT:
Securities are divided into five categories. Type I securities are also known as:
Banks should account for trading securities at market value. Any changes in cost should be regarded as a/an:
Banks also serves as “registrar†for stocks and bond issues. The registrar accounts for all shares issued, certificates outstanding, and Certificates cancelled. The role/s of the registrar is/are:
A financial institution’s performance in helping to meet the credit needs of its community is evaluated in context of information about:
Whole life policies offer lifetime coverage at a level premium rate that does not increase as the insured ages. Whole life policies are classified in all of the below mentioned categories EXCEPT:
Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will “____________†These amounts until paid.
The European Central Bank is the central bank for the Europe’s single currency, the EURO.
The ECB’s main task is to maintain the EURO’s:
Recent turmoil in the financial markets illustrate the volatility of the secondary market for subprime loans and the significant liquidity risk incurred when originating a large volume of loans intended for:
When a loan becomes delinquent or when collection seems unlikely, banks often suspend:
A bank may serve as ___________ for a company’s employee benefit and retirement plans.
A client makes the following statement: “If you make us put property tags and numbers on major equipment, next we will have to put tags on every pen, pencil, and paper clip in the place.†This is the argument that if a particular action is taken, it will inevitably lead to another, less desirable action. We may call this:
Off-balance-sheet usually means an asset or debt or financing activity not on the company’s balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as
___________.
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:
Derivates can be effective low cost tools for managing expose experience losses due to:
Employee benefits are generally considered non-wage compensations designed to enhance any employee’s salary compensation. However, it should be noted that payroll is one of the largest operating expense in many banks. Losses can occur if a bank does not have adequate controls over this function. The largest risk/s bank face in this function is/are:
Securities available for sale should be reported at current market value. When this type of security has an unrealized gain or loss:
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:
All lending institutions assume some loans will not be repaid and thus estimate the losses they expect from their loan portfolio. Management of the lending institution sets a reserve for loan losses at a given point based on factors such as:
A residential mortgage-related security that is rated investment grade or is the credit quivalent thereof, or a residential ortgage security that is rated investment grade in one of the wo highest investment grade rating categories. It usually qualifies as:
Insurance products yield _________ compared to regular investment option and this is besides the added incentives (read bonuses) offered by insurers.
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:
Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining collateral from the counterparty Marking to market all collateral daily; if a deficit (within established guidelines) exists, additional collateral may be obtained from the counterparty Reconciling the repurchase and reverse repurchase subsidiary ledgers to the stock record and general ledger daily. Out-of-balances are recorded as suspense items and researched immediately These are actually:
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:
Back-office operations are _____________ as offshore operations which establish business entities in tax-free export zones or offshore centers.
Some of the countries that do not permit companies to use IAS without a reconciliation to domestic generally accepted accounting principals are all EXCEPT:
It provides additional living expenses when the home is unlivable, so home owners can continue to live comfortably. While the home is made livable, the homeowner policy will pay for items such as rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?
The tax implications are to be considered in case of life insurance. As, you can take out in chunks to supplement the income, and minimize tax burden, while keeping the majority still under the tax differed status (Not to mention the benefit of Roth IRA).So, the end result of what you have is for disposable income is once again better with the:
Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE:
A __________ is a health insurance plan where medical treatment is fully covered if provided by doctor or a hospital belonging to PPO’S network of health care providers.
Some of the risks associated with bond funds are all of the following EXCEPT:
Which of the following statements about the over-the-counter market is false?
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:
The time that a new group member must wait before becoming eligible to enroll in a group insurance plan is known as the:
A participant’s right to receive partial or full benefits under a private retirement plan even if the participant terminates employment prior to retirement is referred to as
_____________ funds may specialize in a particular industry segment, such as technology or consumer products stocks.
Endowment policies are similar to___________ policies in that premiums are usually level through the term of policy and the policies build cash values.
A health services delivery organization that offers the option to its members to choose to receive a service from participating or a non-participating provider. Which one of the best suits to this definition?
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?
____________ swaps give companies extra flexibility to exploit their comparative advantage in their respective borrowing markets.
Notes and bonds are long-term debt instruments. Long-term debt instruments are sold at ______________ when the market rate _____________ the stated interest rate.
_____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.
Municipal bonds are issued by state and local governments, U.S. territories, and non-federal public agencies such as school districts, cities, and airport authorities. Municipal debt is considered the second safest form of debt security after U.S. government obligations. Some types of municipal bonds include all of the following EXCEPT:
Preferred stock is similar to common stock in that it represents ownership in a corporation.
Preferred stockholders generally receive as fixed dividend rate. The types of preferred stock include all of the following EXCEPT: