IIA-CFSA Online Practice Questions and Answers

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?

A. Auditors should base findings and recommendations on significant information

B. Auditors should be aware of that the concept of materiality and significance take on different meanings in the public and private sectors

C. Both of these

D. None of these

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

A. Mark up

B. Premium

C. Return value

D. Both AandB

The U.S government is the largest borrower in the world and has a variety of debt instruments. These government obligations or issues are a safe form of debt security, and there has never been a default. The "full faith and credit of the government" back these issues. Some terms and definitions include:

A. Negotiable securities

B. Non-negotiable securities

C. Series YY bonds

D. Series NN bonds

Risks related to assets/liability management that auditors should be aware of include all of the following EXCEPT:

A. Deficient information processing, accounting, reconcilement, and reporting systems in relation to transaction volume and complexity

B. Failure to effectively manage third-party vendors

C. Failure to use legal counsel effectively

D. Deficiencies in the integration of purchase-oriented businesses with the responsibilities associated with fiduciary relationships

A mutual fund that invested primarily in utility companies and bonds would be an example for an income mutual fund. Which of the following risk/s is/are NOT associated with bond funds?

A. Credit risk

B. Prepayment risk

C. Liquidity risk

D. Interest rate risk

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

The "discount on bonds payable" account is __________when a bound sells at discount. The "premium on bond payable" is ____________ when a bond sells a premium.

A. Credited, debited

B. Debited, credited

C. Accrued, debited

D. Deferred, debit

Life insurance policy in which two people are covered on one policy is called:

A. Mortgage life insurance

B. Group life insurance

C. Whole life insurance

D. Survivors universal insurance

Option's in major types of life insurance is/are:

A. May be renewable or convertible to a whole life policy (term life insurance)

B. May pay dividends, may provide a reduced paid-up policy. Partial cash surrenders permitted (whole life insurance)

C. May pay dividends minimum death benefit partial cash surrenders permitted

D. All of these

Which of the following is not an audit objective of a commodity department?

A. All customer accounts are opened and maintained in accordance with the rules and regulations commodity futures trading commission (CFTC) and the various commodity Exchanges

B. Adequate control exist to ensure the accuracy and propriety of information contained in regulatory reports, such as the commodity futures trading commission form 1-FR, and the focus report

C. Verify the accuracy and reporting (inventory reports, fail reports, again reports and profit and loss reports.)

D. None of these