IIA-CFSA Exam Practice Test Instant Access

Question 1

_____________ funds may specialize in a particular industry segment, such as technology or consumer products stocks.

AIndex

BSector

CGrowth

DIncome

Answer : B

Question 2

Close-end funds are traded on:

AA primary market

BSecondary market

CTertiary market

DAre not traded anywhere

Answer : B

Question 3

Which of the following is not an audit objective of a commodity department?

AAll customer accounts are opened and maintained in accordance with the rules and regulations commodity futures trading commission (CFTC) and the various commodity Exchanges

BAdequate control exist to ensure the accuracy and propriety of information contained in regulatory reports, such as the commodity futures trading commission form 1-FR, and the focus report

CVerify the accuracy and reporting (inventory reports, fail reports, again reports and profit and loss reports.)

DNone of these

Answer : C

Question 4

Audit objectives that apply to one sales portion are all EXCEPT:

AEnsure that daily activity of each salesman is reviewed by head salesman

BEnsure that inventory is being accurately market to market on a continuing basis

CEnsure customer markups are reasonable relative to NASD

DNone of these

Answer : B

Question 5

Call provisions are often part of ______________, but usually not bonds issued by ______________.

AZero coupon bond, Federal Government bonds

BCorporate bonds, Zero coupon bonds

CCorporate and municipal bonds, bonds issued by Federal Government

DNone of these

Answer : C

Question 6

I- Surrender Changes

II- Mortality and Expense risk change

III- Administrative Fees

IV- Underlying funds expenses

V- Fees charges for other features

These are the charges which investors pay when they invest in:

AVariable annuity

BFixed annuity

CMixed annuity

DBoth B & C depends upon situation

Answer : A

Question 7

The benefits of tax deferral will out weigh the costs of a variable annuity only if the investor

holds it as:

ALong-Term investment

BShort-Term investment

CCredit-Risk investment

DAnnuity investment

Answer : A

IIA-CFSA Certified Financial Services Auditor CFSA Exam Practice Test