IIA-CFSA Exam Practice Test Instant Access

Question 1

Which of the following are NOT common funding vehicles used by insurers to invest in retirement plan assets as they are accumulated?

AGroup deferred annuities.

BDeposit administration contracts.

CSeparate account contracts.

DKeogh plans.

Answer : D

Question 2

Which of the following are generally considered to be characteristics of savings deposits?

1.Interest bearing.

2. No stated maturity.

3. Penalty for withdrawal.

AI and II only.

BII and III only.

CII and III only.

DI, II, and III.

Answer : A

Question 3

__________ is a tool to transfer qualified investments from one account to another. In order to retain certain special tax treatments, funds may not be co-mingled with other types of assets, including other IRAS.

ARollover IRA

Bsimple IRA

CConduit IRA

DSEP IRA

Answer : C

Question 4

Sarbanes Oxley and bases are:

AFinancial service institutes B. Customer agencies

CFraud detecting companies

DRegulatory reporting requirements

Answer : D

Question 5

The plans developed for the audit functions should be updated as circumstances dictate. Such specific types of plans include all EXCEPT:

AActivity Reports

BTarget dates

COpportunities and threats

DStaffing plans and financial budgets

Answer : C

Question 6

When conducting an audit of securities investments, the following objectives and audit steps should be considered EXCEPT:

ADetermine whether policies, procedures, practices, and internal controls over security investments are adequate and being followed

BDetermine whether transactions are properly authorized and recorded. Verify that dividend or interest income is accurately calculated and recorded in the general ledger

CDetermine that the institution has an adequate process for reconciling subsidiary records to the general ledger on a regular basis

DDetermine whether the institution adequately control and records the sold securities in balance sheet

Answer : D

Question 7

Feasibility studies and cost benefit analysis Approval process for initiating system development and implementation of systems that are developed Change control procedures for new system developments and modifications to existing systems to ensure that only authorized changes are moved to production General and detailed design specification Project review, including periodic milestones reviews and post-implementation reviews Contracting procedures that include the requirements for describing expected project deliverables such as system components and source codes, project timeframes, estimated hours, and the maximum allowable expenses for each phase These are some of the standards of:

ASystem development methodology

BOutput controls

CSecurity controls

DCollection of Classified information

Answer : A

IIA-CFSA Certified Financial Services Auditor CFSA Exam Practice Test