Exam 1: Certified Financial Services Auditor

Stockholders are generally allowed one vote per share held. As a result, individuals who hold large blocks of share are more likely to be board members. Which of the following are out of the basic rights of stockholders?

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?

Some of the risks associated with bond funds are all of the following EXCEPT:

Endowment policies are similar to___________ policies in that premiums are usually level through the term of policy and the policies build cash values.

The process of purchasing all or any part of anew issue of municipal securities form the issuer and offering such securities for sale to investors is called:

Insurance companies decide on a _________ whether an investigation is necessary

After implementation of a drop out recovery program, employment rate rose. The drop out recovery program is responsible for increases in employment and look for possible economic or other factors that might have contributed to the rise. This example may be referred towards:

Notes and bonds are long-term debt instruments. Long-term debt instruments are sold at ______________ when the market rate _____________ the stated interest rate.

Auditors can use background information to define and modify:

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.

The SEC has 20 day__________ to review the materials before registration; however, the period is often longer than 20 days as the SEC may request additional information from the issuer.

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

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:

An organization might decide that the risk of fire is high so it will pay a high premium on its fire insurance policy to transfer the risk as much as possible. However, the organization will still have to pay deductible amount on the policy if a fire occurs. This scenario depicts:

HMO (Health maintenance organization) must meet the specifications of the federal HMO act as well as meeting many rules and regulations required at state level. There are following basic models EXCEPT:

ECB performs all these tasks EXCEPT:

Optional basic and supplement life insurances are the variants of:

Strategic Risk if not properly controlled, understood or measured may result in:

Major types of Real Estate Investment Trust (REITs) include all of the following EXCEPT:

To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment These are the primary reasons