Question 1

Some objectives of an audit related to mutual funds might include determining that:

Accepted Answer

A)  Mutual fund checks are issued in accordance with firm policies and supported by valid trades 
B)  Mutual fund purchases are confirmed on a timely basis 
C)  Mutual fund switches are not authorized by the client 
D)  All EXCEPT "C" 
A)  Mutual fund checks are issued in accordance with firm policies and supported by valid trades 
B)  Mutual fund purchases are confirmed on a timely basis 
C)  Mutual fund switches are not authorized by the client 
D)  All EXCEPT "C"

Question 2

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?

Accepted Answer

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 
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

Question 3

The risks associated with operating objectives include all of the following EXCEPT:

Accepted Answer

A)  Customer requirements 
B)  Technology 
C)  Competitor 
D)  Financial institute 
A)  Customer requirements 
B)  Technology 
C)  Competitor 
D)  Financial institute

Question 4

Deposit accounts are either interest bearing or non-interest bearing. Interest bearing accounts includes _________ and ___________. The types of accounts bear interest for a fixed period of time and are known as time deposits.

Accepted Answer

A)  Savings accounts, certificates of deposit 
B)  Savings accounts, term deposit 
C)  Certificate of deposit, Savings accounts and certificates of deposit 
D)  Savings accounts, certificates of deposit and non-interesting bearing account 
A)  Savings accounts, certificates of deposit 
B)  Savings accounts, term deposit 
C)  Certificate of deposit, Savings accounts and certificates of deposit 
D)  Savings accounts, certificates of deposit and non-interesting bearing account

Question 5

Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she would have the right to buy 5% of newly issued shares. These are:

Accepted Answer

A)  Proxy rights 
B)  Preemptive rights 
C)  Inspection rights 
D)  Liquidation rights 
A)  Proxy rights 
B)  Preemptive rights 
C)  Inspection rights 
D)  Liquidation rights

Question 6

Asset Management is the term usually given to describe companies that run manual Funds. The largest are those who provide:

Accepted Answer

A)  Passive Funds 
B)  ETF (Exchange traded funds) 
C)  Index Funds 
D)  All of the above 
A)  Passive Funds 
B)  ETF (Exchange traded funds) 
C)  Index Funds 
D)  All of the above

Question 7

A firm is trying to acquire another company. This is called ____________, and all the participants involved must register with the SEC.

Accepted Answer

A)  Proxy contest 
B)  Merger 
C)  Acquisition 
D)  Both A & C 
A)  Proxy contest 
B)  Merger 
C)  Acquisition 
D)  Both A & C

Question 8

Shareholders also have the right to receive declared dividends. Besides the potential for capital appreciation, investors also have the potential to receive dividend income. There are several types of dividends. For instance, an investor with 500 shares of stock selling at $50 per share would have 1,000 shares at $25 per share after a 2-for-1 split. These types of dividends are called:

Accepted Answer

A)  Cash dividends 
B)  Stock split 
C)  Preferred dividends 
D)  None of these 
A)  Cash dividends 
B)  Stock split 
C)  Preferred dividends 
D)  None of these

Question 9

Residential loans are usually secured by all EXCEPT:

Accepted Answer

A)  Mortgages 
B)  Current Assets 
C)  Deed of truest 
D)  Land contracts 
A)  Mortgages 
B)  Current Assets 
C)  Deed of truest 
D)  Land contracts

Question 10

A sound Asset/Liability management policy must manage following risk EXCEPT:

Accepted Answer

A)  Credit Risk 
B)  Capital Risk 
C)  Interest-Rate risk 
D)  None of these 
A)  Credit Risk 
B)  Capital Risk 
C)  Interest-Rate risk 
D)  None of these

Question 11

The EU saving Directive is aimed at effective taxation of saving income in the form of:

Accepted Answer

A)  Interest payments 
B)  Inflation 
C)  Both of these 
D)  None of these 
A)  Interest payments 
B)  Inflation 
C)  Both of these 
D)  None of these

Question 12

Following statements define risk EXCEPT:

Accepted Answer

A)  Organization has knowledge of facts constituting a dangerous condition 
B)  Organization voluntarily exposes itself to the danger 
C)  The element of assurance in an undertaking 
D)  Measured in terms of impact and likelihood 
A)  Organization has knowledge of facts constituting a dangerous condition 
B)  Organization voluntarily exposes itself to the danger 
C)  The element of assurance in an undertaking 
D)  Measured in terms of impact and likelihood

Question 13

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

Accepted Answer

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 
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

Question 14

Watch lists of loans that are in danger of becoming delinquent generally contain information on such as:

Accepted Answer

A)  Customers name and account information 
B)  Loan balance outstanding 
C)  Available collateral and its estimated value 
D)  All of these 
A)  Customers name and account information 
B)  Loan balance outstanding 
C)  Available collateral and its estimated value 
D)  All of these

Question 15

Managed care health techniques are most often practical by organizations and professionals that assume risk for a/an:

Accepted Answer

A)  Infinite population 
B)  Finite or defined population 
C)  None of these 
D)  Any one of these 
A)  Infinite population 
B)  Finite or defined population 
C)  None of these 
D)  Any one of these

Question 16

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:

Accepted Answer

A)  Distribution and stability is the EURO area 
B)  Purchasing power and thus price stability in the EURO area 
C)  Purchasing power and thus price downfalls in the EURO area 
D)  None of these 
A)  Distribution and stability is the EURO area 
B)  Purchasing power and thus price stability in the EURO area 
C)  Purchasing power and thus price downfalls in the EURO area 
D)  None of these

Question 17

These are used to speculate on the direction of interest rates. The trading of these contracts is limited. The future market is the main trading market for securities based on interest-rate movements. What are these?

Accepted Answer

A)  Put Options 
B)  Call Options 
C)  Interest rate options 
D)  Index options 
A)  Put Options 
B)  Call Options 
C)  Interest rate options 
D)  Index options

Question 18

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor's (S&P) or Moody's. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.

Accepted Answer

A)  Investment grade bonds 
B)  Speculative bonds 
C)  Junk bonds 
D)  Blue chip bonds 
A)  Investment grade bonds 
B)  Speculative bonds 
C)  Junk bonds 
D)  Blue chip bonds

Question 19

___________ supervise domestic and international activities of national banks and perform corporate analysis.

Accepted Answer

A)  National bank Examiners 
B)  National banks project directors 
C)  Subcontractors of Government entities 
D)  None of these 
A)  National bank Examiners 
B)  National banks project directors 
C)  Subcontractors of Government entities 
D)  None of these

Question 20

Which premium life insurance is flexible enough under which policy holder may change the death benefit from time to time?

Accepted Answer

A)  Variable life insurance 
B)  Universal life insurance 
C)  Term life insurance 
D)  Straight life insurance 
A)  Variable life insurance 
B)  Universal life insurance 
C)  Term life insurance 
D)  Straight life insurance

Some objectives of an audit related to mutual funds might include determining that:

The risks associated with operating objectives include all of the following EXCEPT:

Deposit accounts are either interest bearing or non-interest bearing. Interest bearing accounts includes _ and ___. The types of accounts bear interest for a fixed period of time and are known as time deposits.

Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she would have the right to buy 5% of newly issued shares. These are:

Asset Management is the term usually given to describe companies that run manual Funds. The largest are those who provide:

A firm is trying to acquire another company. This is called ____________, and all the participants involved must register with the SEC.

Residential loans are usually secured by all EXCEPT:

A sound Asset/Liability management policy must manage following risk EXCEPT:

The EU saving Directive is aimed at effective taxation of saving income in the form of:

Following statements define risk EXCEPT:

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

Watch lists of loans that are in danger of becoming delinquent generally contain information on such as:

Managed care health techniques are most often practical by organizations and professionals that assume risk for a/an:

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:

These are used to speculate on the direction of interest rates. The trading of these contracts is limited. The future market is the main trading market for securities based on interest-rate movements. What are these?

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor's (S&P) or Moody's. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.

___________ supervise domestic and international activities of national banks and perform corporate analysis.

Which premium life insurance is flexible enough under which policy holder may change the death benefit from time to time?

Certified Government Auditing Professional

The Internal Audit Activity Role in Governance, Risk, and Control

Conducting the Internal Audit Engagement

Business Analysis and Information Technology

Filters

Exam 1: Certified Financial Services Auditor

Some objectives of an audit related to mutual funds might include determining that:

The risks associated with operating objectives include all of the following EXCEPT:

Deposit accounts are either interest bearing or non-interest bearing. Interest bearing accounts includes _________ and ___________. The types of accounts bear interest for a fixed period of time and are known as time deposits.

Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she would have the right to buy 5% of newly issued shares. These are:

Asset Management is the term usually given to describe companies that run manual Funds. The largest are those who provide:

A firm is trying to acquire another company. This is called ____________, and all the participants involved must register with the SEC.

Residential loans are usually secured by all EXCEPT:

A sound Asset/Liability management policy must manage following risk EXCEPT:

The EU saving Directive is aimed at effective taxation of saving income in the form of:

Following statements define risk EXCEPT:

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

Watch lists of loans that are in danger of becoming delinquent generally contain information on such as:

Managed care health techniques are most often practical by organizations and professionals that assume risk for a/an:

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:

These are used to speculate on the direction of interest rates. The trading of these contracts is limited. The future market is the main trading market for securities based on interest-rate movements. What are these?

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor's (S&P) or Moody's. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.

___________ supervise domestic and international activities of national banks and perform corporate analysis.

Which premium life insurance is flexible enough under which policy holder may change the death benefit from time to time?

Certified Government Auditing Professional

The Internal Audit Activity Role in Governance, Risk, and Control

Conducting the Internal Audit Engagement

Business Analysis and Information Technology

Filters

Deposit accounts are either interest bearing or non-interest bearing. Interest bearing accounts includes _ and ___. The types of accounts bear interest for a fixed period of time and are known as time deposits.