Exam 1: Certified Financial Services Auditor

In a price risk situation if customers withdraw their applications a bank may be unable to originate enough loans to meet its forward sales commitments .Because of this kind of "Fallout" a bank may have to purchase additional loans in the secondary market at prices higher than anticipated. Alternatively, a bank may choose to liquidate its commitment to sell and deliver mortgages by paying a fee to the counterparty commonly called a ______________.

Risks associated with compliance with laws and regulations may actually _________ impact ________ in ________. Choose the correct set.

Which of the following is NOT included in the list of principles for formulating well- stated audit objectives?

Close-end funds:

Some organizations will strive to simply with the law; others will use the Act as an opportunity to further promote treasury best practices. Specific areas of opportunity include all of the following EXCEPT:

Annuities provide the annuitants with ________________.

Insiders are generally barred from:

In which of the following ways would the writer of an uncovered call usually make a profit?

Which one of the following statements elaborates some insurance products that fall under the regulatory authority of SEC?

Internal auditing controls (e.g. segregation of duties, monitoring, reconciliation), management controls (e.g. the plan, methods and procedures adopted by management to ensure its goals are met, including systems for measuring reporting and monitoring program performance), physical controls (e.g. security), and Information technology control (e.g. access security controls ,data center operation controls). All these are examples of:

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:

Risks inherent in the management process are known as:

The primary component of the McCarran-Ferguson Act is/are:

When the maturity date of the annuity arrives, the insurer begins making a series of payment to the annuitant over a stated period (Known as__________).

Which one of the following activities is not related to the trust committee activities that should be reviewed?

It is a contract that defines corporation and bondholders responsibilities and is designed to protect the right of the bondholders. A trustee (most often a commercial bank) is generally appointed to ensure that the obligations defined in the agreement are of trust indenture must e filled with SEC. What is it?

Checking account may pay interest. Checking accounts that pay interest are referred as a:

____________ are the instruments with maturities of 30 years for new issues (10-to-30-years issues were allowed in the past). The amounts range from $1,000 to $1,000,000 and are sold at auction in a manner similar to that for treasury notes.

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?

Continuous auditing is a method used to automatically perform control and risk assessment more frequently. Technology is the key to enable such an approach. Continuous auditing changes the audit paradigm from periodic reviews of a sample to ongoing audit testing of ______ percent of transactions.