IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 311:

  Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent

  that the lender will buy them back at a future date. The borrower is required to return the securities to the

  lender, either on demand or at a specified time.

  A major reason for securities lending is:

  A. To circulate the issued capital

  B. To facilitate short sale

  C. To facilitate over the counter trade

  D. To fasten secondary market trading

  Correct Answer: B

• Question 312:

  _____________ is a type of insurance that employers provide for employees. Injured employees must file with the agency that administrates it in their state and notify their employer. It pays: Medical expenses for employees and rehabilitation benefits for employees who become disables through work Death benefits for survivors of employees who die because of an occupational injury or disease

  A. Dental insurance

  B. Presumptive disability provision

  C. Consumer-driven health plan

  D. Worker's compensation

  Correct Answer: D

• Question 313:

  Many group disability income policies contain a physical examination provision that requires a doctor to examine a claimant before the claim is paid. The insurer may also require the claimant to undergo periodic examinations to verify:

  A. That the disability still exists

  B. That the correct amount was paid

  C. That the claim is properly satisfied

  D. None of these

  Correct Answer: A

• Question 314:

  Most of the group health policies contain a _____________to prevent individuals covered under more than one plan from receiving benefits greater than the expense incurred.

  A. Coordination of benefits provisions

  B. Preexisting condition provision

  C. Consumer-driven health

  D. Renewable term provision

  Correct Answer: A

• Question 315:

  Group insurance policies typically include a preexisting condition provision that excludes:

  A. Coverage for conditions that the individual received treatment for during specified period prior to the effective date of coverage

  B. Provisions to prevent individuals covered under more than one plan from receiving enefits greater than the expense incurred

  C. Provisions to prevent mutual fund covered under more than one plan from receiving enefits greater than the expense incurred

  D. Coverage for conditions that the individual received treatment for after specified period rior to the effective date of coverage

  Correct Answer: A

• Question 316:

  All members of a group insurance plan (group insureds) are covered under a single contract, known as a master group insurance contract. The employer or entity purchasing the group insurance is known as group policyholder. In _____________, group insureds do not pay any premium for the coverage.

  A. Noncontributory plan

  B. Contributory plan

  C. Life insurance

  D. Preexisting provision condition

  Correct Answer: A

• Question 317:

  Employee benefits are generally considered non-wage compensations designed to enhance any employee's salary compensation. However, it should be noted that payroll is one of the largest operating expense in many banks. Losses can occur if a bank does not have adequate controls over this function. The largest risk/s bank face in this function is/are:

  A. Making salary payments to employees no longer on the payroll

  B. Paying employees for unearned overtime, sick time, or vacation time

  C. Entering improper or unauthorized salary

  D. All of these

  Correct Answer: D

• Question 318:

  Auditors testing mutual funds transactions will typically focus on whether customer purchases and redemptions are accounted properly. In cases where brokers are used to maintain customer accounts, auditors may need to confirm:

  A. The number of shares held by the broker

  B. The number of shares held by the dealer

  C. The number of shares held by the shareholder itself

  D. The number of shares held by the mutual fund

  Correct Answer: A

• Question 319:

  The fund prospectus is the document that provides a general overview and description of the fund. The intent is to provide a potential investor with enough information to make a sound financial decision. The following information is generally placed in a prospectus EXCEPT:

  A. General description of the fund

  B. Condensed financial information (including annual rate of return and fees)

  C. All the management staff

  D. How to purchase and redeem shares

  Correct Answer: C

• Question 320:

  This agreement occurs when a security is sold with an agreement to buy it back. The repurchase date is usually very short term, often one day. Dealers sell a portion of their securities to entities with cash reserves and agree to buy them back for the principal plus interest. What is this?

  A. Certificate of deposit

  B. Commercial Paper

  C. Money market fund

  D. Repurchase agreement

  Correct Answer: D