IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 191:

  Which one of the following is NOT the rule of National Association of Securities Dealers (NASD)?

  A. All correspondence and all transactions must be reviewed and approved by the firm and maintained for three years.

  B. Disciplinary actions regarding employees must be reported to NASD.

  C. Firms do not need to maintain fidelity bond to protect against losses due to theft or misappropriation of securities

  D. None of these.

  Correct Answer: C

• Question 192:

  Insider rule/s:

  A. They are not allowed to profit from their information by trading a stock before that information is public.

  B. They are generally barred from short selling.

  C. Must file a personnel statement with SEC and report all personal security transactions in their corporation no later than 10 days after the end of the calendar month in which they occur.

  D. Both A and C

  Correct Answer: D

• Question 193:

  In SEC review process, if SEC believes that the registration statement contains false or misleading information or that pertinent information has been omitted, it can suspend the process with______________.

  A. Stop orders

  B. Deficiency letters

  C. Legal notices

  D. Red herring

  Correct Answer: A

• Question 194:

  The SEC has 20 day__________ to review the materials before registration; however, the period is often longer than 20 days as the SEC may request additional information from the issuer.

  A. Review period

  B. Cooling-off period

  C. Transitional phase

  D. All of These

  Correct Answer: B

• Question 195:

  Preliminary prospectuses are often called:

  A. Red hearing

  B. Introductory Notes

  C. Initial Coverage

  D. None of these

  Correct Answer: A

• Question 196:

  Some specific requirements of securities and exchange 1934 Act are:

  A. Registration Requirement

  B. Credit Regulation

  C. Manipulation and Deception

  D. All of these

  Correct Answer: D

• Question 197:

  Which of the following is NOT the requirement of Exempt Securities Act?

  A. Non-Profit groups

  B. Private placement

  C. Fees for underwriter of the issue.

  D. fixed annuity contracts and insurance policies.

  Correct Answer: C

• Question 198:

  While the SEC review is in progress, the issuer can circulate a preliminary prospectus to determine the interest in issue. The preliminary prospectus must include all of the following EXCEPT.

  A. Statement that the registration is filed but not effective.

  B. Statement that the information is subject to change.

  C. Red-Ink it to distinguish it from final prospectus.

  D. All of these

  Correct Answer: D

• Question 199:

  Which of the following are typical information system controls that are used to ensure properly authorized transaction?

  Online validation routines that check dollar authority limits.

  II. Online user access controls.

  III. Automated balancing and reconciliation routine.

  IV.

  Edits that validate full completion of data input fields.

  A.

  I and II only

  B.

  II and III only

  C.

  III and IV only

  D.

  I, II, and IV only

  Correct Answer: D

• Question 200:

  If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?

  A. Take no action

  B. Purchase an interest rate floor

  C. Enter into an interest rate swap to receive fixed and pay floating rate payments

  D. Enter into an interest rate swap to receive floating and pay fixed rate payment

  Correct Answer: A