IIA-CFSA Online Practice Questions and Answers

Which one of the following audit objectives and steps should not be considered when performing an audit of deposit account?

A. Determine whether dormant accounts are closed in a timely manner and in accordance with policies

B. Determine whether there are adequate controls to prevent unauthorized access and change to customer accounts

C. Determine whether applicable fees and penalties are properly assessed and posted

D. None of these

Asset/liability management is a planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve a desired spread. A sound ALM policy must manage many types of risks such as:

A. Credit risk

B. Liquidity risk

C. Capital risk

D. All of these

A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out "or foreclosure process. There are various scenarios typical for determining special servicers; as mentioned below, EXCEPT:

A. Those seller/issuers retaining the first-loss piece

B. Those investing in "B" pieces in return for special services rights.

C. Those appointed solely because of risk-management expertise.

D. None of these

The federal open market committee (FOMC) board sets reserve requirements and shares the responsibility with the reserve banks for:

A. Interest rate policy

B. Premium policy

C. Discount rate policy

D. All of these

National banks must sell any real estate within _________ of acquisition if it is not used for banking purpose.

A. Three years

B. Fourteen years

C. Four years

D. Five years

Types of barrowed funds include all EXCEPT: A. Rollover funds

B. Debentures

C. Discounting or Advancing through counts with a federal bank

D. Mortgage payable

"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:

A. Receiving Bank

B. Remitter

C. PUPID

D. Repetitive transfer

Following are the examples of illegal sales practice EXCEPT:

A. Twisting occurs when an agent purposefully misguides and individual into canceling one policy and purchasing a new one

B. Rebating occurs when an agent agree to give an individual the share of the commission as an incentive to buy a policy

C. Misrepresentation occurs when agent makes false and misleading statements, but they are allowed to guarantee policy dividends

D. None of these

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 AandB

Which of the following is NOT the benefit of an endowment insurance policy?

A. Ideal combination of investment and insurance coverage

B. Attractive return and maximum security

C. Amount paid out is guaranteed with tax free returns

D. None of these