IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 61:

  The objective/s of trust department's administration of corporate trust accounts include:

  I. Policies and producers ensure compliance with governing instruments, applicable law and accepted fiduciary principles

  II. Deficiencies are identified and corrective action is promptly initiated

  III. There is sufficient management and staff expertise to administer these accounts

  IV.

  Effective policies, procedures and internal controls have been established

  V.

  The legitimate needs of security holders and other interested parties are met in a professional and timely manner

  A.

  III and IV

  B.

  I, II and IV

  C.

  II, III and V

  D.

  All of these

  Correct Answer: D

• Question 62:

  The objective/s of a trust department audit is/ are to:

  A. Detect and prevent irregularities such as errors and fraud

  B. Access adequacy of accounting, operating, and administrative controls and procedures

  C. Determine the quantity of account administration

  D. all of the above

  Correct Answer: D

• Question 63:

  Business continuation insurance protects a business against the potential economic loss resulting from the passing or disability of key executives and/or employees. This is the insurance coverage which comes under the umbrella heading of:

  A. Casualty insurance

  B. General liability insurance

  C. Disability insurance

  D. Straight forward risk insurance

  Correct Answer: A

• Question 64:

  Individuals can invest in REITs:

  A. By purchasing their shares directly on an open exchange

  B. By investing in a mutual fund that specializes in public real estate

  C. Both AandB

  D. Either A or B; it depends

  Correct Answer: D

• Question 65:

  Securities products include:

  1.

  Trusts

  2.

  Annuities

  3.

  Derivatives

  4.

  Stocks

  5.

  Bonds

  6.

  Commodities

  7.

  Mutual Funds

  8.

  Pension Funds

  9.

  Term Loans

  10.

  Asset Management

  11.

  Money Market Products

  A. Only 1, 2, 3,4,5,10,11

  B. Only 1, 3, 5, 10

  C. All except 8, 9

  D. All except 8,9,10

  Correct Answer: C

• Question 66:

  Premiums can be increased and your coverage can be cancelled in the event certain conditions stated in the policy are triggered. This is in the case of:

  A. Non-cancelable policies

  B. Conditionally renewable policies

  C. Guaranteed renewable policies

  D. None of these

  Correct Answer: B

• Question 67:

  If a surgeon loses a hand, she may not be able to perform surgery. If she has an ____________ policy, she would be able to recover, even though she can still work as a doctor in a nonsurgical field. If she has a ____________ policy, there would be no recovery, even if the surgeon's only possible alternative is to be a tour guide.

  A. General disability, occupational disability

  B. Occupational disability, General disability

  C. None-cancelable policy and general disability

  D. None of these

  Correct Answer: B

• Question 68:

  Here are the following major types of long-term disability policies EXCEPT:

  A. Non-cancelable policies

  B. Guaranteed renewable policies

  C. Periodically renewable disability policy

  D. Conditionally renewable policies

  Correct Answer: C

• Question 69:

  Which of the following is NOT the benefit of an endowment insurance policy?

  A. Ideal combination of investment and insurance coverage

  B. Attractive return and maximum security

  C. Amount paid out is guaranteed with tax free returns

  D. None of these

  Correct Answer: D

• Question 70:

  Life insurance that can be made valid up to a certain age or period is called ___________. This insurance coverage continues up until an agreed time without having to be renewed.

  A. Voluntary Life insurance

  B. Straightforward risk insurance

  C. Savings insurance

  D. All of these

  Correct Answer: A