Online Access Free IIA-CFSA Practice Test

An organization might decide that the risk of fire is high so it will pay a high premium on its fire insurance policy to transfer the risk as much as possible. However, the organization will still have to pay deductible amount on the policy if a fire occurs. This scenario depicts:

• A.Accept the risk
• B.Control the risk
• C.Assessment of the likelihood that a given risk will occur
• D.Transfer the risk

Which one of the following is not commonly granted trustee's powers?

• A.Those pertaining to distributions of principal
• B.Pertaining to the retention, purchase and sale of assets
• C.Those pertaining to make dealings
• D.None of these

Internal auditors, engaging in activities that are illegal and discreditable to the profession of internal auditing or the organization, violate which of the following principles:

• A.Awareness
• B.Competence
• C.Integrity
• D.Objectivity

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

• A.Competent parties
• B.Periodic review
• C.Legal purpose
• D.Agreement

Back-office operations are _____________ as offshore operations which establish business entities in tax-free export zones or offshore centers.

• A.Same
• B.Almost same
• C.Not the same
• D.None of these