Free Financial CFSA Exam Questions (page: 15)

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Data gathering and evaluation during field work includes:

  1. Gaining and understanding of the activity, system, or process under review
  2. Observing conditions and operations
  3. Interviewing people and examining assets and accounting, and other operational business, and other operational records.
  4. All of these

Answer(s): D



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Compliance testing is designed primarily to:

  1. Hold detection risk to an acceptable level
  2. Determine whether policies and procedures have been followed
  3. Determine that account balances exit, are accurate, and are properly classified
  4. Provide evidence about monetary misstatements

Answer(s): B



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

  1. Application of inappropriate valuation models
  2. Management not involved
  3. Evidence of a "Star Manager" syndrome
  4. Absence of fiduciary mentality

Answer(s): A



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Major categories of loans include all of the following EXCEPT:

  1. Commercial loans
  2. Residential loans
  3. Consumer loans
  4. Agricultural loans

Answer(s): D



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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.

  1. Term loans
  2. Consumer loans
  3. Installment loans
  4. Floor-plan financing

Answer(s): D



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