Exam 1: Certified Financial Services Auditor

In variable life insurance the number and type of insurance choice available are dependent on insurer, but some policies are available with a wide variety of separate accounts also known as:

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?

The balance sheet is the fundamental report of a company's financial position. An examination of a balance sheet will assist in determining:

Which of the following statements about endowments is correct?

Workpapers serve as the connecting link between the audit assignment, the auditor's fieldwork, and the final report. Most importantly, the workpapers document the auditor's conclusions and the reasons those conclusions were reached. Workpapers also provide a basis for demonstrating compliance with the IIA's Standards. Among other things, workpapers may include all of the following EXCEPT:

If more funds than expected are needed to cover loans losses in a given period, the reserve must be increased and the difference is charged to:

Factor/s that influences/influence the state of an organization's control environment is/are:

Hedge funds:

A statement of cash flows in a financial report that shows incoming and outgoing money during a particular period (often monthly or quarterly). It does not include _________ items such as depreciation. The statement is a useful tool for determining the short-term viability of a company, particularly its ability to pay bills.

It should be an immediate decision:

"Audit management must decide whether to sample (judgment or statistical) or use the entire universe, and which specific quantitative and qualitative methodologies will provide sufficient, competent and relevant evidence to answer the questions posed in the audit objectives." It is an example of:

All the activities, mentioned below, cause rise in interest rate EXCEPT:

Underwriting decisions are more influenced by what underwriters think they can sell to the public than _____________.

Insurance contracts are also considered ____________ in that they are legal documents that required the insurer to pay if covered events occur. Because the insurance company creates the contract, it is liable if there are any ambiguities in the contract language.

There are multiple sets of attribute and performance standards:

Policy holders of whole life insurance use the cash dividends in many ways as:

Carefully crafted audit objectives are important BECAUSE:

Relief from administrative details and continuity are the major reasons for:

Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will "____________" These amounts until paid.

Which of the following statements about the over-the-counter market is false?