IIA-CFSA Online Practice Questions and Answers

"Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments." This statement best explains one of the following principles:

A. Competency

B. Confidentiality

C. Objectivity

D. Integrity

All these are disparities in public and private sector audits EXCEPT:

A. Objective and scope

B. Specific requirements of relevant regulation, ordinances or ministerial directives

C. Specific and broad range mandate in public sector

D. Reasonable assurance

Carefully crafted audit objectives are important BECAUSE:

A. Objectives provide direction

B. Limit collection of unneeded information

C. Control scope, methodology, timing and nature of audit work

D. All of the above

Time deposit transactions are recorded in:

A. Computer-generated ledger sheets and customer pass books

B. Computer-generated ledger sheets

C. Repos

D. Reverse Repos

Banks provide the following personal trust services for individuals EXCEPT:

A. Trust Development

B. Serves as Co-fiduciary

C. Serve as Agent and guardian of Estates

D. None of these

Commercial banks create money by:

A. Making loans

B. Selling government bonds to the public

C. Placing reserves at the Federal Reserve Bank.

D. Repurchasing their stock on the open market.

Following are the examples of illegal sales practice EXCEPT:

A. Twisting occurs when an agent purposefully misguides and individual into canceling one policy and purchasing a new one

B. Rebating occurs when an agent agree to give an individual the share of the commission as an incentive to buy a policy

C. Misrepresentation occurs when agent makes false and misleading statements, but they are allowed to guarantee policy dividends

D. None of these

The two most common types of commercial insurance companies are:

A. Sole proprietor and stock

B. Equity and debt

C. Stock and mutual

D. Partnership and corporation

Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

A. Equity indices

B. Stock exchange indices

C. OTC market indices

D. All of these

Historical simulation and model based approach are the methods to calculate:

A. Return on investment

B. Return on Risk

C. Value at Risk

D. Value at par