IIA-CFSA Online Practice Questions and Answers

"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:

A. Determining appropriate audit methods and strategies

B. Determining resources needed to conduct the audit

C. Determining audit scope

D. None of these

It provides additional living expenses when the home is unlivable, so home owners can continue to live comfortably. While the home is made livable, the homeowner policy will pay for items such as rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?

A. Dwelling

B. Personal property

C. Loss of use

D. Medical coverage

Main areas within financial services are:

A. Banking

B. Stock Exchange

C. Operations

D. All of these

Federal Reserve's duties fall into following general areas EXCEPT:

A. Conducting the nation's monetary policy

B. Supervising and regulating banking institutions and protecting the credit right of consumer

C. Maintaining the stability of the financial system

D. None of these

An area of FOMC board responsibilities is the development and administration of regulation that implement major federal laws governing consumer credit, such as:

A. Truth bending Act and the equal credit opportunity Act

B. Home Mortgage disclosure Act and truth savings ACT

C. Sunshine Act

D. Only A and b

A major function of NAIC is to encourage __________ among state insurance departments through the development of model bills and regulations.

A. Consistency

B. Uniformity

C. Regularity

D. All of these

Some specific requirement of securities Exchange Act of 1934 are all of the following EXCEPT:

A. Credit Regulations

B. Manipulation and Deception

C. Insider rules

D. Articles of incorporation

Pension plans that an Employer establishes for retired or disabled employees, regardless of whether an employee contributes, are known as:

A. Defined benefit plans

B. Guaranteed Pension benefits

C. Pre-Pension Schemes

D. None of the above

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

A. Credit Risk

B. Capital Risk

C. Interest-Rate risk

D. None of these

Recent activities in the marketplace have caused your company to comply with requests from 50 percent of your policyholders to cancel their policies. The company complies and refunds them amounts due. Your audit of this should ensure these refunds were charged against what account?

A. Incurred but not reported (IBNR)

B. Unearned premium reserve

C. Goodwill

D. Allocation for uncollectible accounts