IIA-CFSA Exam Practice Test Instant Access

Question 1

End users need to hedge the prices at which they can purchase these commodities for instance:

AA University might want to lock in the price at which it purchases electricity to supply its air conditioning units for upcoming summer months

BAn airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel

CA cotton producer wants to hedge his exposure to changes in the price of fertilizers or his end product (cotton)

DOnly A and B

Answer : D

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

Unlike trust, there is no conveyance of title to the account assets. When the ________ relationship is established; legal title to the property remains with the principal.

AGuardianship

BEstate Administration

CAgency Services

DNone of these

Answer : C

Question 7

The responsibility of setting an estate includes:

ATaking possession of the property included within the descedent's estate

BValuing the estate's property

CPaying any debts of the descedent's

DAll of these

Answer : D

IIA-CFSA Certified Financial Services Auditor CFSA Exam Practice Test