IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 441:

  Common type/s of installment loans is/are:

  A. Credit card loans

  B. Residential loans

  C. Mortgage loans

  D. All of these

  Correct Answer: C

• Question 442:

  Which one of the following is NOT an indicator of control weakness in derivatives?

  A. Application of inappropriate valuation models

  B. Management not involved

  C. Evidence of a "Star Manager" syndrome

  D. Absence of fiduciary mentality

  Correct Answer: A

• Question 443:

  Major categories of loans include all of the following EXCEPT:

  A. Commercial loans

  B. Residential loans

  C. Consumer loans

  D. Agricultural loans

  Correct Answer: D

• Question 444:

  __________ allows businesses that sell durable goods such as auto-mobiles to finance inventories. As the business sells goods, the loan advance against those goods is repaid.

  A. Term loans

  B. Consumer loans

  C. Installment loans

  D. Floor-plan financing

  Correct Answer: D

• Question 445:

  Compliance testing is designed primarily to:

  A. Hold detection risk to an acceptable level

  B. Determine whether policies and procedures have been followed

  C. Determine that account balances exit, are accurate, and are properly classified

  D. Provide evidence about monetary misstatements

  Correct Answer: B

• Question 446:

  Data gathering and evaluation during field work includes:

  A. Gaining and understanding of the activity, system, or process under review

  B. Observing conditions and operations

  C. Interviewing people and examining assets and accounting, and other operational business, and other operational records.

  D. All of these

  Correct Answer: D

• Question 447:

  Audit evidence:

  A. Is sufficient when it is factual and would convince an informed person to reach the sameconclusion

  B. Is competent if it consistently produces the same outcomes

  C. Is relevant when it is directly related to audit comments, recommendations and conclusions

  D. All of these

  Correct Answer: D

• Question 448:

  A manager of a very controversial program may have stolen only $200, but the controversy and public accountability aspects may make the 200 significant, where it would not be material private sector financial statement opinion audit. It means:

  A. Auditors should be aware that the concepts of materiality and significance take on different meanings in the public and private sector

  B. During the planning and reporting processes, government auditors may need to consider qualitative factors such as the visibility of the program under audit, or the newness of the program or changes in its condition

  C. Both of these

  D. None of these

  Correct Answer: C

• Question 449:

  For Example one exception in 1000 cases is probably not the reason enough to recommend overhauling the entire system, although the final answer must be derived from the context and the condition of the related control system. Which one of the following statements is clearly supported by this example?

  A. Auditors should base findings and recommendations on significant information

  B. Auditors should be aware of that the concept of materiality and significance take on different meanings in the public and private sectors

  C. Both of these

  D. None of these

  Correct Answer: A

• Question 450:

  After implementation of a drop out recovery program, employment rate rose. The drop out recovery program is responsible for increases in employment and look for possible economic or other factors that might have contributed to the rise. This example may be referred towards:

  A. Post Hoc, Ergo Propter Hoc

  B. Ad Hominem

  C. Non Sequiter

  D. False use of authority

  Correct Answer: A