Question 1

Options are quoted daily in the newspapers. The listing provides the name of the underlying stock and:

Accepted Answer

A)  Its closing price that day 
B)  The strike price of the option 
C)  Its closing price that day, the strike price of the option, the closing prices(premiums) of the call and 3 put contracts trading closest to expiration 
D)  The closing prices (premiums) of the 3 call and 3 put contracts trading closest to expiration 
A)  Its closing price that day 
B)  The strike price of the option 
C)  Its closing price that day, the strike price of the option, the closing prices(premiums) of the call and 3 put contracts trading closest to expiration 
D)  The closing prices (premiums) of the 3 call and 3 put contracts trading closest to expiration

Question 2

Stock transfer agent, Bond registrar, stock registrar and dividend reinvestments agent are the additional duties of:

Accepted Answer

A)  Brokers/Brokerage houses 
B)  Corporate trust departments 
C)  Mutual funds agencies 
D)  None of these 
A)  Brokers/Brokerage houses 
B)  Corporate trust departments 
C)  Mutual funds agencies 
D)  None of these

Question 3

Sarbanes Oxley and bases are:

Accepted Answer

A)  Financial service institutes 
B)  Customer agencies 
C)  Fraud detecting companies 
D)  Regulatory reporting requirements 
A)  Financial service institutes 
B)  Customer agencies 
C)  Fraud detecting companies 
D)  Regulatory reporting requirements

Question 4

Nature of internal audit activities and quality criteria against which the performance of these services can be evaluated is best portrayed by:

Accepted Answer

A)  Performance Standards 
B)  Attribute Standards 
C)  Implementation Standards 
D)  Evaluation Standards 
A)  Performance Standards 
B)  Attribute Standards 
C)  Implementation Standards 
D)  Evaluation Standards

Question 5

Notes are debt instruments issued to:

Accepted Answer

A)  A broker 
B)  An agent 
C)  A single investor 
D)  A single investor managing a portfolio 
A)  A broker 
B)  An agent 
C)  A single investor 
D)  A single investor managing a portfolio

Question 6

Which one of the following is NOT an indicator of control weakness in derivatives?

Accepted Answer

A)  Application of inappropriate valuation models 
B)  Management not involved 
C)  Evidence of a "Star Manager" syndrome 
D)  Absence of fiduciary mentality 
A)  Application of inappropriate valuation models 
B)  Management not involved 
C)  Evidence of a "Star Manager" syndrome 
D)  Absence of fiduciary mentality

Question 7

Off-balance-sheet usually means an asset or debt or financing activity not on the company's balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as ___________.

Accepted Answer

A)  A letter of credit 
B)  Scrutiny 
C)  Debt securities 
D)  Term papers 
A)  A letter of credit 
B)  Scrutiny 
C)  Debt securities 
D)  Term papers

Question 8

Term Life insurance is available in which of the following variant?

Accepted Answer

A)  Group team life insurance 
B)  Decreasing team life insurance 
C)  Level team life insurance 
D)  All of these 
A)  Group team life insurance 
B)  Decreasing team life insurance 
C)  Level team life insurance 
D)  All of these

Question 9

The interagency statement calls for these disclosures to be provided EXCEPT:

Accepted Answer

A)  Orally during any sales presentation 
B)  Orally when investment advice concerning the non deposit investment products is provided 
C)  In advertisement and other promotional materials as specified in the interagency statement 
D)  None of these 
A)  Orally during any sales presentation 
B)  Orally when investment advice concerning the non deposit investment products is provided 
C)  In advertisement and other promotional materials as specified in the interagency statement 
D)  None of these

Question 10

All the statements mentioned below are clear and compelling business benefits of a strategic approach to enterprise-wide risk intelligence; EXCEPT:

Accepted Answer

A)  Remove disputes about whose information is "correct" 
B)  Improves cross-function, enterprise level analysis. 
C)  Provides a reusable enterprise intelligence plat form, able to adders new needs 
D)  None of these 
A)  Remove disputes about whose information is "correct" 
B)  Improves cross-function, enterprise level analysis. 
C)  Provides a reusable enterprise intelligence plat form, able to adders new needs 
D)  None of these

Question 11

Which of the following does NOT come under the consideration of systematic or interconnection risk?

Accepted Answer

A)  Risk management systems that include limits or controls on interconnection risk to which the entity is willing to expose itself. 
B)  Provisions for monitoring systematic risk effectively 
C)  Contingency plans setting forth actions to be taken when system-wise market disruptions occur 
D)  Due diligence of enforcement activities 
A)  Risk management systems that include limits or controls on interconnection risk to which the entity is willing to expose itself. 
B)  Provisions for monitoring systematic risk effectively 
C)  Contingency plans setting forth actions to be taken when system-wise market disruptions occur 
D)  Due diligence of enforcement activities

Question 12

When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

Accepted Answer

A)  Accrual of interest 
B)  Deferral of interest 
C)  Loan losses 
D)  Loan prepayments 
A)  Accrual of interest 
B)  Deferral of interest 
C)  Loan losses 
D)  Loan prepayments

Question 13

___________ help bring performance back into compliance, or address problems that have been identified such as employee grievance system, employee performance approvals, or an administrative appeal's process.

Accepted Answer

A)  Correction controls 
B)  Detective controls 
C)  Preventive controls 
D)  None of These 
A)  Correction controls 
B)  Detective controls 
C)  Preventive controls 
D)  None of These

Question 14

When looking at account receivables auditors should ensure:

Accepted Answer

A)  Receipts are processed and recorded timely 
B)  Collections are handled by an outside party 
C)  Disbursements are made right after the original authorizations 
D)  Collections are handled by a brokerage house 
A)  Receipts are processed and recorded timely 
B)  Collections are handled by an outside party 
C)  Disbursements are made right after the original authorizations 
D)  Collections are handled by a brokerage house

Question 15

Other asset categories are mentioned in:

Accepted Answer

A)  Audited Balance sheet 
B)  Unaudited balance sheet 
C)  Balance sheet only when they are material 
D)  Other books of account 
A)  Audited Balance sheet 
B)  Unaudited balance sheet 
C)  Balance sheet only when they are material 
D)  Other books of account

Question 16

The benefits of an endowment insurance policy include all of the statements mentioned below EXCEPT:

Accepted Answer

A)  Ideal combination of investment and insurance coverage 
B)  Attractive return and maximum security 
C)  Amount paid out is guaranteed and taxable returns 
D)  Both A&B 
A)  Ideal combination of investment and insurance coverage 
B)  Attractive return and maximum security 
C)  Amount paid out is guaranteed and taxable returns 
D)  Both A&B

Question 17

Banks provide the following personal trust services for individuals EXCEPT:

Accepted Answer

A)  Trust Development 
B)  Serves as Co-fiduciary 
C)  Serve as Agent and guardian of Estates 
D)  None of these 
A)  Trust Development 
B)  Serves as Co-fiduciary 
C)  Serve as Agent and guardian of Estates 
D)  None of these

Question 18

____________ is an electronic payment network used by individuals businesses, financial institutions and government organizations. It provide better cash management capabilities and lower costs than traditional paper payments.

Accepted Answer

A)  EFT (Electronic Funds Transfer) 
B)  ACH (Automated cleaning house) 
C)  ATM 
D)  None of these 
A)  EFT (Electronic Funds Transfer) 
B)  ACH (Automated cleaning house) 
C)  ATM 
D)  None of these

Question 19

Which one of the following statements is NOT the part of audit work schedule?

Accepted Answer

A)  The extent and type of findings in the last audit 
B)  Loss of assets, errors and fraud 
C)  The availability of audit staff resources 
D)  Opportunities to achieve operations benefits 
A)  The extent and type of findings in the last audit 
B)  Loss of assets, errors and fraud 
C)  The availability of audit staff resources 
D)  Opportunities to achieve operations benefits

Question 20

Following elements should be documented in the audit scope EXCEPT:

Accepted Answer

A)  Time period to be covered by audit tests 
B)  Available data: No. of records Locations Need to create data Form Reliability 
C)  Prioritizing risks 
D)  Both A and B 
A)  Time period to be covered by audit tests 
B)  Available data: No. of records Locations Need to create data Form Reliability 
C)  Prioritizing risks 
D)  Both A and B

Options are quoted daily in the newspapers. The listing provides the name of the underlying stock and:

Stock transfer agent, Bond registrar, stock registrar and dividend reinvestments agent are the additional duties of:

Sarbanes Oxley and bases are:

Nature of internal audit activities and quality criteria against which the performance of these services can be evaluated is best portrayed by:

Notes are debt instruments issued to:

Which one of the following is NOT an indicator of control weakness in derivatives?

Off-balance-sheet usually means an asset or debt or financing activity not on the company's balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as ___________.

Term Life insurance is available in which of the following variant?

The interagency statement calls for these disclosures to be provided EXCEPT:

All the statements mentioned below are clear and compelling business benefits of a strategic approach to enterprise-wide risk intelligence; EXCEPT:

Which of the following does NOT come under the consideration of systematic or interconnection risk?

When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

___________ help bring performance back into compliance, or address problems that have been identified such as employee grievance system, employee performance approvals, or an administrative appeal's process.

When looking at account receivables auditors should ensure:

Other asset categories are mentioned in:

The benefits of an endowment insurance policy include all of the statements mentioned below EXCEPT:

Banks provide the following personal trust services for individuals EXCEPT:

____________ is an electronic payment network used by individuals businesses, financial institutions and government organizations. It provide better cash management capabilities and lower costs than traditional paper payments.

Which one of the following statements is NOT the part of audit work schedule?

Following elements should be documented in the audit scope EXCEPT:

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

Options are quoted daily in the newspapers. The listing provides the name of the underlying stock and:

Stock transfer agent, Bond registrar, stock registrar and dividend reinvestments agent are the additional duties of:

Sarbanes Oxley and bases are:

Nature of internal audit activities and quality criteria against which the performance of these services can be evaluated is best portrayed by:

Notes are debt instruments issued to:

Which one of the following is NOT an indicator of control weakness in derivatives?

Off-balance-sheet usually means an asset or debt or financing activity not on the company's balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as ___________.

Term Life insurance is available in which of the following variant?

The interagency statement calls for these disclosures to be provided EXCEPT:

All the statements mentioned below are clear and compelling business benefits of a strategic approach to enterprise-wide risk intelligence; EXCEPT:

Which of the following does NOT come under the consideration of systematic or interconnection risk?

When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

___________ help bring performance back into compliance, or address problems that have been identified such as employee grievance system, employee performance approvals, or an administrative appeal's process.

When looking at account receivables auditors should ensure:

Other asset categories are mentioned in:

The benefits of an endowment insurance policy include all of the statements mentioned below EXCEPT:

Banks provide the following personal trust services for individuals EXCEPT:

____________ is an electronic payment network used by individuals businesses, financial institutions and government organizations. It provide better cash management capabilities and lower costs than traditional paper payments.

Which one of the following statements is NOT the part of audit work schedule?

Following elements should be documented in the audit scope EXCEPT:

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