Certified Financial Services Auditor v5.0

Page:    1 / 35   
Exam contains 511 questions

Organization’s Objectives are described in three general categories:

  • A. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting
  • B. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting, compliance with applicable laws and regulations
  • C. Effectiveness and Efficiency of operations, Compliance with applicable laws and regulations, Monitoring and management control system
  • D. Effectiveness and Efficiency of operations, Reliability of internal and external reporting, Compliance with applicable laws and regulations


Answer : D

The plans developed for the audit functions should be updated as circumstances dictate.
Such specific types of plans include all EXCEPT:

  • A. Activity Reports
  • B. Target dates
  • C. Opportunities and threats
  • D. Staffing plans and financial budgets


Answer : C

Which one of the following statements is NOT the part of audit work schedule?

  • A. The extent and type of findings in the last audit
  • B. Loss of assets, errors and fraud
  • C. The availability of audit staff resources
  • D. Opportunities to achieve operations benefits


Answer : B

Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:

  • A. Non- Compliance with the laws, rules and regulations
  • B. An event or cause that can interfere with achieving the objective (e.g. What can go wrong?)
  • C. A probability or likelihood of occurrence
  • D. The negative consequences of not achieving the objective


Answer : A

The extent to which an organization has implemented controls to minimize the actual occurrences of the risk determines the vulnerability to the risk actually occurring, or the
_______

  • A. Inherent Risk
  • B. Understanding Risk
  • C. Control Risk
  • D. Disguised Risk


Answer : C

The major benefit of risk assessment is:

  • A. To staff the plans and financial budgets
  • B. To consider factor that may affect risk and giving the highest priority to audit areas that have the highest potential for adverse consequences
  • C. To identify the possible adverse effects based solely on the type of activity, the type of resources, amount of assets or complexity of transactions
  • D. Failure to achieve the organization’s goal and objectives


Answer : B

The risk analysis process involves all of the following steps EXCEPT:

  • A. Identifying auditable activities (e.g. programs, accounts, contracts, transactions)
  • B. Identifying relevant risk factors (e.g. Complexity of programs, size of program, adequacy of internal control system)
  • C. Prioritizing Risks
  • D. Determine the need for external assistance of outsourcing


Answer : D

Which of the following steps is/are NOT considered in the audit planning process?

  • A. Identifying what is to be audited?
  • B. Assess risk and vulnerability
  • C. Determine how to manage the risks
  • D. Develop specific issues and Questions for the audit


Answer : C

Following is a list of background items auditors should review to determine their impact on audit objectives EXCEPT:

  • A. The history of the program or entire organization
  • B. Results of prior audits and their working papers
  • C. Applicable laws, rules and regulations. Specific items usually set forth in laws and regulations include the following: What the program is supposed to do? Who is supposed to do it? How much can be spent on what?
  • D. Audit methods, strategies, tests, analysis and comparisons


Answer : D

Auditors can use background information to define and modify:

  • A. Scope of the audit
  • B. The likelihood that a risk will occur
  • C. Activity reports
  • D. Audit Criteria (Reasonable, attainable, and relevant)


Answer : A

The main purposes of the audit survey are to assist with following goals and tasks
EXCEPT:

  • A. Develop preliminary estimates of time and resource requirements
  • B. Determine whether further auditing is necessary
  • C. Documenting key control activities
  • D. Identify potential critical control points, control deficiencies or excessive controls


Answer : C

Auditors define audit objectives based on information gained:

  • A. From external sources of the organization
  • B. Either from knowledge they already have or from inquiries and observations
  • C. From internal sources of the organization
  • D. From external sources of the organization


Answer : B

Which of the following is NOT included in the list of principles for formulating well- stated audit objectives?

  • A. Clearly identify the client
  • B. Clearly identify the type of performance to be audited and separate objectives if more than one element of performance is to be reviewed
  • C. Frame objectives that consider a realistic scope and methodology
  • D. Onsite Observation


Answer : D

Carefully crafted audit objectives are important BECAUSE:

  • A. Objectives provide direction
  • B. Limit collection of unneeded information
  • C. Control scope, methodology, timing and nature of audit work
  • D. All of the above


Answer : D

The scope of an audit defines the boundaries of the audit by addressing such items as the audit period or number of locations to be reviewed.. Some important considerations when defining the scope of an audit include:

  • A. Needs of potential users of the audit report B Preliminary judgment about materiality levels
  • B. Both A and B
  • C. None of the above


Answer : C

Page:    1 / 35   
Exam contains 511 questions

Talk to us!


Have any questions or issues ? Please dont hesitate to contact us

Certlibrary doesn't offer Real Microsoft Exam Questions.
Certlibrary Materials do not contain actual questions and answers from Cisco's Certification Exams.
CFA Institute does not endorse, promote or warrant the accuracy or quality of Certlibrary. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.