IIA IIA-CFSA Quiz 6 Topic 2 Questions 26-30

Question: 1

Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for

charge-offs and select a sample of charged-off loans whether they are handled properly.

Another useful test is:

ATo select a sample of loans that are significantly paid inorder to determine whether they meet the charge-off criteria and assess why they have not been charged off

BTo select a sample of loans that are significantly paid in order to determine whether they
meet the past criteria and assess why they have not been charged off

CTo select a sample of loans that are significantly paid in order to determine whether they
meet the charge-off criteria and assess why they have not been charged off

DTo select a sample of loans that are significantly paid in order to determine whether they
meet the charge-off criteria to meet the current requirements

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Question: 2

''Audit management must decide whether to sample (judgment or statistical) or use the entire universe, and which specific quantitative and qualitative methodologies will provide sufficient, competent and relevant evidence to answer the questions posed in the audit objectives.'' It is an example of:

ADetermining appropriate audit methods and strategies

BDetermining resources needed to conduct the audit

CDetermining audit scope

DNone of these

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Question: 3

A UIT typically issues redeemable securities (or ''units''), like a mutual fund, which means:

AThat the UITs typically will make a one-time ''public offering''

BA UIT does not activity trade its investment portfolio

CThat the UIT will, buy back an investor's request at their approximate net asset value

DAll of these

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Question: 4

''Ongoing monitoring activities are conducted to periodically reassess risk and the effectiveness of control risk,'' is an objective of:

ARisk Identification

BRisk Measurement

CRisk Management Process

DRisk Prioritization

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Question: 5

The ''combined ratio'' of an insurance company is the ratio from combining which of the following?

1. The ''loss ratio.''

2. The ''other underwriting expense ratio.''

3. The ''expense ratio.''

4. The ''IBNR.''

AI and II only.

BI and II only.

CIII and IV only.

DI, II, III and IV.

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IIA IIA-CFSA Quiz:6 Topic:2 Questions:26-30