Selectively increasing the price of a mortgages loan above the bank’s established rate to certain customers (“overages”) may have the effect of discriminating against those customers .This practice left undetected and not properly controlled may raise the possibility of:

Personal trust accounts may be:

There are different classes of mutual funds. Classes that typically do not have a front-end sales load. Instead they may impose a contingent deferred sales load and a 12b-1 fee (along with other annual expenses) is called:

Adequate procedures and controls associated with swap transactions should exist to help minimize the risks inherent in transaction process. Example/s of these controls may include:

A __________ is a health insurance plan where medical treatment is fully covered if provided by doctor or a hospital belonging to PPO’S network of health care providers.

Disadvantages of term life insurance to buyers are all EXCEPT:

Which of the following is least expensive form of life coverage, at least initially?

Commercial banks create money by:

Banks also serves as “registrar” for stocks and bond issues. The registrar accounts for all shares issued, certificates outstanding, and Certificates cancelled. The role/s of the registrar is/are:

In SEC review process, if SEC believes that the registration statement contains false or misleading information or that pertinent information has been omitted, it can suspend the process with______________.

It should be an immediate decision:

Securities are divided into five categories. Type I securities are also known as:

Which premium life insurance is flexible enough under which policy holder may change the death benefit from time to time?

Trading securities are securities that a bank intends to sell within a short period, usually less than:

A financial institution’s performance in helping to meet the credit needs of its community is evaluated in context of information about:

In variable life insurance the number and type of insurance choice available are dependent on insurer, but some policies are available with a wide variety of separate accounts also known as:

Life insurance includes all of following the products EXCEPT:

Federal Reserve Board has:

Bank loans can generally be classified in several ways EXCEPT:

For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

In effect to protect customers from unsubstantiated or undocumented losses. NASD has some specific rules. The rules include:

An intelligent risks management platform approaches risk from the:

These occur when two parties trade currencies at a mutually agreed upon exchange rate. One trader calls another trader asking for the price of a particular currency, and the second trader quotes both buying and selling prices for that currency. What are these?

In order to avoid reputation risk; e.g. a bank that originates and sells loans into the secondary market should follow ______________ to protect its reputation in the market to support future loan sales.

The companies strive to improve customer acquisition, services and retention through the use of following methods EXCEPT:

The second largest economic area in the world is:

Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:

I- Loan Processing

II- Claims Processing

III- Applicating

IV- Credit and Collection

V- Reconciliations

VI- Account Payments

VIII- Time and Expense Reimbursement

IX- Vendor Payments

X- Payroll

These all are the services included in:

Non-deposit investment product includes:

How many member states of the European Union are participating in the single Euro Currency?

_____________ is a type of insurance that employers provide for employees. Injured employees must file with the agency that administrates it in their state and notify their employer. It pays: Medical expenses for employees and rehabilitation benefits for employees who become disables through work Death benefits for survivors of employees who die because of an occupational injury or disease

Stockholders are generally allowed one vote per share held. As a result, individuals who hold large blocks of share are more likely to be board members. Which of the following are out of the basic rights of stockholders?

Options are quoted daily in the newspapers. The listing provides the name of the underlying stock and its closing price that day, the strike price of the option, the closing prices(premiums) of the 3 call and 3 put contracts trading closest to expiration. Listings can be divided into categories. Which of the following is/are out of those categories?

___________ are a type of mutual funds that is required by law to invest in highly liquid and low-risk securities such as certificates of deposits or government securities. These funds pay dividends that generally reflect short-term interest rates and are not federally insured. Due to low-risk nature of the investments, these funds rarely lose money.

Auditors testing mutual funds transactions will typically focus on whether customer purchases and redemptions are accounted properly. In cases where brokers are used to maintain customer accounts, auditors may need to confirm:

A residential mortgage-related security that is rated investment grade or is the credit quivalent thereof, or a residential ortgage security that is rated investment grade in one of the wo highest investment grade rating categories. It usually qualifies as:

These are used to speculate on the direction of interest rates. The trading of these contracts is limited. The future market is the main trading market for securities based on interest-rate movements. What are these?

Municipal bonds are issued by state and local governments, U.S. territories, and non-federal public agencies such as school districts, cities, and airport authorities. Municipal debt is considered the second safest form of debt security after U.S. government obligations. Some types of municipal bonds include all of the following EXCEPT:

The actual amount of payment the annuitant pays is based on:

The interagency statement calls for these disclosures to be provided EXCEPT:

Preferred stock is similar to common stock in that it represents ownership in a corporation.

Preferred stockholders generally receive as fixed dividend rate. The types of preferred stock include all of the following EXCEPT:

Feasibility studies and cost benefit analysis Approval process for initiating system development and implementation of systems that are developed Change control procedures for new system developments and modifications to existing systems to ensure that only authorized changes are moved to production General and detailed design specification Project review, including periodic milestones reviews and post-implementation reviews Contracting procedures that include the requirements for describing expected project deliverables such as system components and source codes, project timeframes, estimated hours, and the maximum allowable expenses for each phase These are some of the standards of:

Exception reports generated by the lending institution are designed to identify past-due loans. Auditors should review these exception reports to identify an unusually high number of exceptions and old or unusual exceptions that might indicate that:

In the United States, banks are required to report cash deposits that exceed $10,000 a day to any one account, regardless of how many branches or deposits have been used in the transactions. Banks are also required to report when cash is used to purchase cashier’s checks, money orders, traveler’s checks, or bank checks in excess of $3000. In the Untied States, accounts are federally insured by the Federal Deposit Insurance Corporations (FDIC). An individual is limited to __________ in insurance coverage at each bank (including branches).

COBIT (Control Objectives for Information and Related Technology) is based on existing Information Systems Audit and Control Foundation, control objectives enhanced with existing and emerging international technical, professional, regulatory, and industry-specific standards. COBIT has four domains or high-level classifications. Which is of the following is NOT out of those domains?

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.

One of the largest components of the global derivative markets and natural adjunct to the fixed income markets is the:

Traditionally, insurance is paid:

Which two of the following characteristics apply to universal life insurance policies?

I. To provide the insured with a number of investment options.

II. To provide the insured with a minimum guaranteed cash value.

III. To provide a cash value fund that accumulates tax deferred.

IV. To provide flexibility of both premium and death benefits.

Stock transfer agent, Bond registrar, stock registrar and dividend reinvestments agent are the additional duties of:

Which of the following situation would not impair audit objectivity?

Risks inherent in the management process are known as:

Banks provide the following personal trust service/services for the individuals:

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:

Which one of the following is/are NOT the type of retirement plans that banks may administer?

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

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

During the posting process of ledger records on deposit account banks may reject some transactions because:

Internal auditing controls (e.g. segregation of duties, monitoring, reconciliation), management controls (e.g. the plan, methods and procedures adopted by management to ensure its goals are met, including systems for measuring reporting and monitoring program performance), physical controls (e.g. security), and Information technology control (e.g. access security controls ,data center operation controls). All these are examples of:

While performing consulting services internal auditors should specifically maintain:

Which one of the following generally pays higher rates of interest than saving accounts?

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

Site Selection Rationale

Client officials client/requesters for audit results

Scope limitations encountered or anticipated

Expert advice

The above elements should be documented in the:

All of the following phrases are used to express the auditor’s opinion EXCEPT:

Certificates of deposit may be:

_____________ funds may specialize in a particular industry segment, such as technology or consumer products stocks.

Recent activities in the marketplace have caused your company to comply with requests from 50 percent of your policyholders to cancel their policies. The company complies and refunds them amounts due. Your audit of this should ensure these refunds were charged against what account?

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

At times when you have more money available, you can pay as if it were a whole life policy and accumulate cash value on a tax deferred basis. It is the advantage of:

Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional capital.

I- With reference to the granting of customer credit lines a thorough analysis of the customer’s overall financial position is performed prior to trading authorization.

II-confirmations of each transaction are sent to customers indicating the quantity, delivery month and the contract price to ensure the integrity of transactions.

III-Original margin deposits in cash or acceptable securities to guarantee performance of contracts are determined in accordance These all are adequate procedures and controls associated with: