Question 1

EFRAG is the abbreviation of:

Accepted Answer

A)  European Federation Reporting Advisory group 
B)  European Financial Reporting Advisory group 
C)  European Financial and Replacement Advisory group 
D)  European Financial Reporting Administration group 
A)  European Federation Reporting Advisory group 
B)  European Financial Reporting Advisory group 
C)  European Financial and Replacement Advisory group 
D)  European Financial Reporting Administration group

Question 2

The primary mechanism for estimating potential losses is mathematical methodology, value at risk ("VaR") which estimates the exposure to market risk:

Accepted Answer

A)  Within a given level of risk, over a defined time period 
B)  Within a given financial arrange over a specified level of risk 
C)  Within an unlimited time period over a specified level of risk 
D)  None of these 
A)  Within a given level of risk, over a defined time period 
B)  Within a given financial arrange over a specified level of risk 
C)  Within an unlimited time period over a specified level of risk 
D)  None of these

Question 3

Issuance of licenses to insurance agents is one of the responsibilities of:

Accepted Answer

A)  European Central bank (EC
B)  
B)  National Association of Issuance Commissioners 
C)  Insurance Commission 
D)  Securities and Exchange Commission 
A)  European Central bank (EC
B)  
B)  National Association of Issuance Commissioners 
C)  Insurance Commission 
D)  Securities and Exchange Commission

Question 4

Both residual and control risk need to be_______________ dealt with in project management.

Accepted Answer

A)  Timely 
B)  Implicitly 
C)  Professionally 
D)  Explicitly 
A)  Timely 
B)  Implicitly 
C)  Professionally 
D)  Explicitly

Question 5

Cash and due from other bank accounts that are listed as a caption on the balance sheet include all currency and coin, cash being collected, and account balances with other banks:

Accepted Answer

A)  Except material-interest-bearing accounts which should be disclosed separately 
B)  Including material interest bearing accounts, which should be disclosed separately. 
C)  Preferably material interest bearing accounts. 
D)  None of these 
A)  Except material-interest-bearing accounts which should be disclosed separately 
B)  Including material interest bearing accounts, which should be disclosed separately. 
C)  Preferably material interest bearing accounts. 
D)  None of these

Question 6

Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulation D supports all of the following EXCEPT:

Accepted Answer

A)  Allows for the issuance and sale of securities to purchasers, if they qualify as accredited investors 
B)  Offerings are advantageous to any private company or entrepreneur because they allow an entity to obtain funding faster and to avoid the costs associated with a public offering 
C)  Allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with SEC. 
D)  None of these 
A)  Allows for the issuance and sale of securities to purchasers, if they qualify as accredited investors 
B)  Offerings are advantageous to any private company or entrepreneur because they allow an entity to obtain funding faster and to avoid the costs associated with a public offering 
C)  Allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with SEC. 
D)  None of these

Question 7

___________ bank balances are bank assets on deposit in other banks.

Accepted Answer

A)  "Due from" 
B)  "Due to fixed reserves 
C)  "Due from reserves" 
D)  Both B& C 
A)  "Due from" 
B)  "Due to fixed reserves 
C)  "Due from reserves" 
D)  Both B& C

Question 8

Most of the group health policies contain a _____________to prevent individuals covered under more than one plan from receiving benefits greater than the expense incurred.

Accepted Answer

A)  Coordination of benefits provisions 
B)  Preexisting condition provision 
C)  Consumer-driven health 
D)  Renewable term provision 
A)  Coordination of benefits provisions 
B)  Preexisting condition provision 
C)  Consumer-driven health 
D)  Renewable term provision

Question 9

All of the following are financial instrument EXCEPT:

Accepted Answer

A)  Prepaid capital 
B)  Debt securities 
C)  Equity securities 
D)  Insurance polices 
A)  Prepaid capital 
B)  Debt securities 
C)  Equity securities 
D)  Insurance polices

Question 10

Not all misstatements will be material enough to affect the fair presentation of the financial statement. A material misstatement is one that the auditors determine would change or influence the option of a reasonable person relying on the financial statements for information. Ultimately, auditors must exercise judgment to assess materiality based on the qualitative nature of the misstatements and their quantitative extent. Materiality is also based on auditors' assessment of control risk levels in the organization. The following factors may influence the auditors' assessment of control risk EXCEPT:

Accepted Answer

A)  Management's awareness or lack of awareness of applicable laws and regulations 
B)  Client policy regarding such matters as acceptable operating practices and codes of conduct 
C)  Assignment of responsibility and delegation of authority to deal with such matters as organizational goals and objectives, operating functions, and regulatory requirements 
D)  None of these 
A)  Management's awareness or lack of awareness of applicable laws and regulations 
B)  Client policy regarding such matters as acceptable operating practices and codes of conduct 
C)  Assignment of responsibility and delegation of authority to deal with such matters as organizational goals and objectives, operating functions, and regulatory requirements 
D)  None of these

Question 11

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

Accepted Answer

A)  Cash flows 
B)  Liabilities 
C)  Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information 
D)  Liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information 
A)  Cash flows 
B)  Liabilities 
C)  Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information 
D)  Liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information

Question 12

_____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.

Accepted Answer

A)  Installment loans 
B)  Consumer loans 
C)  Residential loans 
D)  Asset-based loans 
A)  Installment loans 
B)  Consumer loans 
C)  Residential loans 
D)  Asset-based loans

Question 13

Main areas within financial services are:

Accepted Answer

A)  Banking 
B)  Stock Exchange 
C)  Operations 
D)  All of these 
A)  Banking 
B)  Stock Exchange 
C)  Operations 
D)  All of these

Question 14

Both veteran affairs department and the Federal Housing Administration require an appraisal by a certified or licensed real estate appraiser for transaction valued at:

Accepted Answer

A)  200,000 or more 
B)  250,000 or more 
C)  225,000 or more 
D)  500,000 or more 
A)  200,000 or more 
B)  250,000 or more 
C)  225,000 or more 
D)  500,000 or more

Question 15

Default risk is an alternate term used for:

Accepted Answer

A)  Liquidity Risk 
B)  Credit Risk 
C)  Control Activities Risk 
D)  Operational Risk 
A)  Liquidity Risk 
B)  Credit Risk 
C)  Control Activities Risk 
D)  Operational Risk

Question 16

For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

Accepted Answer

A)  Savings/source of money for down payment 
B)  Appraisal 
C)  Credit History 
D)  Only A&B 
A)  Savings/source of money for down payment 
B)  Appraisal 
C)  Credit History 
D)  Only A&B

Question 17

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

Accepted Answer

A)  Agreement 
B)  Periodic review 
C)  Competent parties 
D)  Legal purpose 
A)  Agreement 
B)  Periodic review 
C)  Competent parties 
D)  Legal purpose

Question 18

Basic control/s to consider when auditing derivates strategies is/are:

Accepted Answer

A)  "Created" Reports 
B)  Risk or position limits 
C)  Highly volatile markets or illiquid markets 
D)  Board-approved guidelines 
A)  "Created" Reports 
B)  Risk or position limits 
C)  Highly volatile markets or illiquid markets 
D)  Board-approved guidelines

Question 19

The trustee is responsible for producing a schedule of distribution which includes information as:

Accepted Answer

A)  Assets and their current fair market value 
B)  The method of distribution 
C)  Each beneficiary's share of assets and the trust's liability 
D)  All of these 
A)  Assets and their current fair market value 
B)  The method of distribution 
C)  Each beneficiary's share of assets and the trust's liability 
D)  All of these

Question 20

Electronic financial services audits should focus on whether there are adequate internal controls in place to protect customer transactions information, and assets. Some key steps in clued all of the following EXCEPT:

Accepted Answer

A)  Determine whether disaster contingency plans for the failure of internet transactions or communication are adequate, regularly updated 
B)  Determine whether disaster contingency plans for the failure of internet transactions or communication are adequate, regularly tested, and regularly updated 
C)  Determine whether an access is controlled by a firewall 
D)  Stress test analyzing changes in market and credit conditions are appropriate. The market assumptions are reasonable 
A)  Determine whether disaster contingency plans for the failure of internet transactions or communication are adequate, regularly updated 
B)  Determine whether disaster contingency plans for the failure of internet transactions or communication are adequate, regularly tested, and regularly updated 
C)  Determine whether an access is controlled by a firewall 
D)  Stress test analyzing changes in market and credit conditions are appropriate. The market assumptions are reasonable

EFRAG is the abbreviation of:

The primary mechanism for estimating potential losses is mathematical methodology, value at risk ("VaR") which estimates the exposure to market risk:

Issuance of licenses to insurance agents is one of the responsibilities of:

Both residual and control risk need to be_______________ dealt with in project management.

Cash and due from other bank accounts that are listed as a caption on the balance sheet include all currency and coin, cash being collected, and account balances with other banks:

Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulation D supports all of the following EXCEPT:

___________ bank balances are bank assets on deposit in other banks.

Most of the group health policies contain a _____________to prevent individuals covered under more than one plan from receiving benefits greater than the expense incurred.

All of the following are financial instrument EXCEPT:

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

_____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.

Main areas within financial services are:

Both veteran affairs department and the Federal Housing Administration require an appraisal by a certified or licensed real estate appraiser for transaction valued at:

Default risk is an alternate term used for:

For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

Basic control/s to consider when auditing derivates strategies is/are:

The trustee is responsible for producing a schedule of distribution which includes information as:

Electronic financial services audits should focus on whether there are adequate internal controls in place to protect customer transactions information, and assets. Some key steps in clued all of the following 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

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Exam 1: Certified Financial Services Auditor

EFRAG is the abbreviation of:

The primary mechanism for estimating potential losses is mathematical methodology, value at risk ("VaR") which estimates the exposure to market risk:

Issuance of licenses to insurance agents is one of the responsibilities of:

Both residual and control risk need to be_______________ dealt with in project management.

Cash and due from other bank accounts that are listed as a caption on the balance sheet include all currency and coin, cash being collected, and account balances with other banks:

Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulation D supports all of the following EXCEPT:

___________ bank balances are bank assets on deposit in other banks.

Most of the group health policies contain a _____________to prevent individuals covered under more than one plan from receiving benefits greater than the expense incurred.

All of the following are financial instrument EXCEPT:

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

_____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.

Main areas within financial services are:

Both veteran affairs department and the Federal Housing Administration require an appraisal by a certified or licensed real estate appraiser for transaction valued at:

Default risk is an alternate term used for:

For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

Basic control/s to consider when auditing derivates strategies is/are:

The trustee is responsible for producing a schedule of distribution which includes information as:

Electronic financial services audits should focus on whether there are adequate internal controls in place to protect customer transactions information, and assets. Some key steps in clued all of the following 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