Exam Code: CFSA Practice test 2023 by Killexams.com team
CFSA Certified Financial Services Auditor (IIA-CFSA)
Certified Financial Services Auditor® (CFSA®) test Syllabus
The CFSA test tests a candidate's knowledge of current auditing practices and understanding of internal audit issues, risks, and remedies in the financial services industry.

The test consists of 115 multiple-choice questions.
The testing period is two hours and fifty-five minutes.
Exam questions are all multiple-choice (objective) with four answer choices.
80% of the test covers four domains: Financial Services Auditing, Auditing Financial Services Products, Auditing Financial Service Processes, and The Regulatory Environment.
The remaining 20% relate to the candidates' chosen discipline and will be at the proficiency level.
CFSA candidates may choose any one of the three disciplines as part of their CFSA test test.
Candidates may not choose to be tested on more than one discipline.
The CFSA designation does not distinguish one chosen discipline from another.

The CFSA test core content covers four domains:

Domain I: Financial Services Auditing (25-35%)
Domain II: Auditing Financial Services Products (25-35%)
Domain III: Auditing Financial Service Processes (25-35%)
Domain IV: The Regulatory Environment (10-20%)

CFSA test Individual Disciplines
Banking: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)
Insurance: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)
Securities: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)

Financial Services Auditing (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these course areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these course areas.
A. IIA International Professional Practices Framework (P)
B. Internal Control/Risk Management/Governance (P)
Internal Control Frameworks
Risk Management Frameworks
Governance Models
C. Audit Process (P)
Audit Planning
Audit Fieldwork
Risk Assessment
Analytical Review
Data Gathering and Evaluation
Testing
Tools and Techniques (e.g., CAAT)
Audit Communications
Monitoring Outcomes
D. Implications of Information Technology (P)
E. Auditing Financial Statement Elements (P)
Balance Sheet
Statement of Cash Flows
Income/Expense Statement
Off Balance-sheet Items
Auditing Financial Services Products (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these course areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these course areas.
A. Lending/Loans (A)
B. Deposits (A)
C. Trusts (A)
D. Annuities (A)
E. Derivatives (A)
F. Electronic Services (A)
G. Cash Management Services (A)
H. Stocks (A)
I. Bonds (A)
J. Commodities (A)
K. Mutual Funds (A)
L. Employee Benefits (A)
M. Capital Market Products (A)
N. Securities Lending (A)
O. Insurance Policies (A)
P. Insurance Products (A)
Q. Foreign Exchange (A)
R. Asset Management (A)
S. Money Market Products (A)
Auditing Financial Service Processes (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these course areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these course areas.
A. Risk Management (A)
Asset/Liability Management
Trading Market Risk
Credit, Liquidity, Operational Risk
Allowance for Loan and Lease Losses
Reserves
B. Underwriting (A)
Loans
Securities
Insurance
Private Placement
Initial Public Offerings
C. Securitizations (A)
D. Treasury Operations (e.g., Cash Management) (A)
E. Back-office Operations (A)
F. Marketing Sales and Distribution (e.g., Insurance Agencies, Bank Branches, Brokers) (A)
G. Claims (A)
H. Investments (A)
I. Broker/Dealer Activities (A)
J. Rating Advisory Service (A)
K. Mergers and Acquisitions (A)
L. Loan Operations (e.g., Collateral Issues, Perfecting Liens) (A)
The Regulatory Environment (10-20%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these course areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these course areas.
A. Overview of the Regulatory Environment (A)
Function of Central Bank
Function of Insurance Regulators
Function of Securities Regulators
B. Laws and Regulations (A)
Equal Credit Opportunity/Antidiscrimination
Home Mortgage Disclosure
Reserve Requirements
Insider Transactions
Lending Disclosure
Deposits Disclosure
Real Estate Sales Disclosure
Self-assessment of Internal Controls/Risk Management
Investor/Depositor Protection
Financial and Personal Information Privacy
Anti-Money Laundering
C. Stock Exchanges and Other Markets (A)
D. Money and Banking (A)
Role of Money and Banking
Bond and Stock Markets
Effect of Interest Rate Movements
Monetary Management Theories
Certified Financial Services Auditor (IIA-CFSA)
Financial (IIA-CFSA) information source
Killexams : Financial (IIA-CFSA) information source - BingNews https://killexams.com/pass4sure/exam-detail/CFSA Search results Killexams : Financial (IIA-CFSA) information source - BingNews https://killexams.com/pass4sure/exam-detail/CFSA https://killexams.com/exam_list/Financial Killexams : IIA objects to PCAOB's proposed confirmation standard

The Institute of Internal Auditors is pushing back against part of a proposed new standard on audit confirmations from the Public Company Accounting Oversight Board, saying it would jeopardize the traditional relationship between internal and external auditors and criticizing the implication that internal auditors are untrustworthy.

IIA president and CEO Anthony Pugliese sent a comment letter Friday to the PCAOB  acknowledging that "although the recommended policy change minimally impacts the provision of internal audit services, it represents a significant departure from the regulatory status quo regarding the relationship between internal and external auditors." 

The IIA is objecting to a section of the PCAOB's proposed confirmation standard that states, "Involving internal auditors or other company employees in these activities would create a risk that information exchanged between the auditor and the confirming party is intercepted and altered." 

He believes that implies internal auditors are "untrustworthy or incapable of exhibiting due care in the performance of their duties."

pugliese-anthony-iia-gam-conference-2022.jpg

Institute of Internal Auditors president and CEO Anthony Pugliese speaking at the IIA’s General Audit Management conference in Las Vegas

Pugliese also objected to comments in a Wall Street Journal article in which unnamed PCAOB officials were cited as saying that the goal of the proposed standard is "to make sure that internal auditors don't manipulate the confirmation requests before they go out or the responses after they come back."

Pugliese denounced that characterization as "false and inflammatory" and "completely unwarranted." 

The PCAOB proposed the standard in December, replacing an interim standard that hasn't changed for two decades. The proposed auditing standard would take into account advances in auditing technology, but would apply to all methods of confirmation, including paper-based and electronic communications. The older interim standard is one of the many inherited by the PCAOB in 2003 from the American Institute of CPAs after the Sarbanes-Oxley Act of 2002 created the government-backed audit regulator (see story).

Pugliese objected to the proposal soon after it was issued in December, contending it would unfairly put internal auditors at the center of an effort to regulate issues within CPA firms (see story). However, the comment letter takes aim at the implications of the standard as far as the role of internal auditors, arguing that the proposed change in the standard was presented without any apparent explanation or evidence for the need for such a change. 

The PCAOB did not immediately respond to a request for comment.

Previously, the PCAOB's standard for evaluating internal auditors has been the Accounting Standard 2605 (AS 2605), "Consideration of the Internal Audit Function," in which the PCAOB specifically acknowledges that "internal auditors maintain objectivity with respect to the activity being audited."

Pugliese contended the "incongruity between the PCAOB's positions in AS 2605 and the present proposal creates regulatory mixed messages" and "jeopardizes longstanding collaborations between external audit firms and internal auditors." 

To address these issues, the letter calls upon the PCAOB to maintain AS 2605 as the standard for evaluating internal auditors' involvement in the confirmation process and to make modifications in the proposed language for the new standard. 

"While the scope of responsibilities for each profession is different, internal and external auditors must work in harmony to ensure that the governance, risk and control processes are in place and adequately working," Pugliese wrote. "Disparagement of either audit function — particularly from a government regulatory agency — undermines this partnership and risks engendering public mistrust in the auditing profession."

He called for an open dialogue with PCAOB chair Erica Williams and other PCAOB members to discuss the internal audit profession's concerns about the proposal and to work together to address them. 

 Mon, 06 Feb 2023 09:38:00 -0600 en text/html https://www.accountingtoday.com/news/iia-objects-to-pcaobs-proposed-confirmation-standard Killexams : Financial Auditor: Job Details and Average Salary

The term financial auditor is often used interchangeably with an accountant, but the two careers have notable differences. A financial auditor ensures that a company's financial statements are in good order and in compliance with generally accepted accounting principles (GAAP). Financial auditors and accountants perform similar tasks in terms of the review of financial data, but auditors are more focused on discovering fraud or error in corporate financial documents.

Key Takeaways

  • A financial auditor is responsible for ensuring that a company's financial statements are in good order and in compliance with generally accepted accounting principles (GAAP).
  • Though often grouped together, the role of an auditor and accountant have distinct differences.
  • Financial auditors use analytical skills to assess a company's accounting and financial reports by testing the documentation of transactions that the company has provided.
  • In addition to a bachelor's degree, a financial auditor must often hold a Certified Public Accountant (CPA) designation.
  • Unlike corporate accountants, financial auditors do not reconcile accounts, nor do they make accounting entries for an organization. Instead, they provide the information necessary to correct errors and accounting fraud.

Generally Accepted Auditing Standards (GAAS)

Financial Auditor Job Description

A financial auditor reviews a company's financial statements, documents, data, and accounting entries. Financial auditors gather information from a company's financial reporting systems, account balances, cash flow statements, income statements, balance sheets, tax returns, and internal control systems. The information is then reviewed and used to present all financial data relating to a specific organization in an accurate, fair manner, ensuring that no fraud or gross errors are present in the company.

Financial auditors speak with multiple departments, including low- and high-level management teams, accounting and finance personnel, and company executives in their pursuit of analytical data. These discussions focus on gaining an understanding of the company's purpose, operations, financial reporting systems, and known or perceived errors in its organizational systems. Financial auditors conduct interviews of key personnel to comprehend what accounting and finance tasks are taking place, and which tasks, policies, or procedures may need to be established or implemented more efficiently.

On a day-to-day basis, financial auditors use analytical skills to assess accounting and financial reports by testing the documentation of transactions that the company has provided. The analysis also includes observation of inventory and the processes used for managing inventory counts. Additionally, financial auditors review accounts receivable, invoices, vendor payments, and billing procedures to ensure compliance with accounting guidelines.

The information gathered from a financial auditor's analysis is used to develop recommendations and specific action items for the organization where an audit was performed. Financial auditors often suggest changes to internal controls and financial reporting procedures to enhance the company's efficiency, cost-effectiveness, and overall performance.

In some instances, they must attest to the information presented through the audit. This attestation represents a stamp of approval for the company's accounting procedures and financial reporting systems. However, financial auditors do not take responsibility for the company's accounting practices or discovered errors.

Unlike corporate or management accountants, financial auditors do not reconcile accounts, nor do they make accounting entries for an organization. Instead, they provide the information necessary to correct errors and accounting fraud to accounting or other finance personnel. They also do not implement changes to accounting or finance policies or procedures in a company.

Education and Training

A financial auditor position often requires at least a bachelor's degree in accounting or finance, although some companies desire a Master's in Business Administration (MBA) with a focus on finance or accounting. Practical experience in accounting or finance fields is also a requirement of most companies hiring financial auditors. Experience in the field may be gained from in-school internships, industry volunteering, or entry-level accounting or finance positions with a focus on research analysis.

In addition to education and experience requirements, a financial auditor must often hold a Certified Public Accountant (CPA) designation. Earning a CPA designation involves extensive study of accounting practices and reporting standards, in addition to passing a rigorous four-part examination. After successfully completing the exam, individuals must meet continuing education requirements as laid out by their state of residence or licensing.

The CPA designation is not the only credential financial auditors can earn to enhance their career trajectory. Financial auditors with practical work experience can qualify to take the Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP), or Certified Financial Services Auditor (CFSA) exams. Each of these designations has its own education, experience, and continuing education requirements.

Skills

A financial auditor must possess certain skills. For example, they must identify issues with financial documentation with accuracy and speed and should feel comfortable presenting recommendations to company executives and accounting personnel based on their findings. Additionally, a financial auditor must analyze information from a wide range of financial statements.

Another handy attribute is advanced and effective communication skills, as a financial auditor must gather much information from company employees and executives. A financial auditor must pay close attention to detail when auditing information and should have a high proficiency in mathematics. Finally, a financial auditor is most successful when also in possession of advanced organizational skills and other soft skills like being personable and likable.

Financial Auditor Salary and Job Prospects

According to the Bureau of Labor Statistics (BLS), the median average annual wage for financial auditors in 2020 was $73,560; however, this figure includes median salary information for accountants, as well. According to Glassdoor, the average annual salary for an auditor in the United States was a bit lower at $66,310, with a low end of $42,000 and a high end of $104,000, but those with senior-level financial auditor positions with management responsibilities or those who observe auditing, accounting, or finance departments in a company could earn salaries well into the six figures.

According to the Bureau of Labor Statistics, accountants and auditors will experience a 4% growth in employment between 2019-2029, the average for all occupations,

The environment where a financial auditor works has a direct impact on their annual salary. Smaller, boutique companies that employ financial auditors do not pay as much as larger, corporate organizations. Financial auditors who work independently on a consulting basis or as sole proprietors may earn more than auditors employed with a company since they often do not qualify for fringe benefits.

What an Auditor Does FAQs

What Does an Internal Auditor Do?

An internal auditor is responsible for reporting to upper management their assessment of the company's compliance and risk management programs, as well as how on track the company is to achieve its financial goals.

What Does an External Auditor Do?

An external auditor is hired by a company to inspect the company's financial records and report whether the financial statements are presented fairly in accordance with the applicable accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

What Does an Auditor Do in a Bank?

A certified bank accountant is responsible for reviewing and evaluating a financial institution's records to ensure accuracy, completeness, and compliance with relevant rules and regulations.

Who Gets Paid More Accountants or Auditors?

There is a broad range in salary for both accountants and auditors. Auditors may have a slight advantage because their position sometimes requires more experience than an accountant, however many factors, especially the size and clientele of the company the accountant or auditor works for, other than the title of the job determine the difference in total compensation,

 Sun, 21 Feb 2016 04:19:00 -0600 en text/html https://www.investopedia.com/articles/wealth-management/022116/financial-auditor-job-description-average-salary.asp Killexams : The Institute of Internal Auditors Signs MoU with New ARABCIIA Regional Body

LAKE MARY, Fla., Feb. 8, 2023 /PRNewswire/ -- The Institute of Internal Auditors - (IIA) - the internal audit profession's leader in standards, certifications, education, research, and technical guidance worldwide – today signed a Memorandum of Understanding (MoU) with the newly-formed Arab Confederation of Institutes of Internal Auditors or "ARABCIIA." The new ARABCIIA functions as a regional body that will help existing IIA affiliates in 10 countries – Kuwait, Lebanon, Qatar, Oman, United Arab Emirates, Jordan, Egypt, Morocco, Sudan, and The Kingdom of Saudi Arabia - to better share resources and enhance collaboration. It will also help drive global adoption of The IIA's Standards and Certified Internal Auditor (CIA) certification and drive many other collaboration initiatives between the region and the Global IIA Headquarters.

Anthony Pugliese, The IIA's President and CEO, and Benito Ybarra, The IIA's Global Board Chair were both in Jeddah, Saudi Arabia to sign the MoU. The ARABCIIA was represented by His Excellency Dr. Hussam Alangari, Chairman of the ARABCIIA and Abdullah S. Alshebeil, Secretary General of ARABCIIA.

"We're excited to welcome the new Arab Confederation to our IIA family," said Pugliese. "This agreement with the newly-created ARABCIIA will better enable our affiliates to collaborate among one another and with IIA Global Headquarters on research, events, and translation, facilitate continuous profession education, and support our shared efforts to grow the internal audit profession. This is a great example of our "OneIIA" approach in action – our profession benefits when we work together."

The new Confederation will strengthen the link between its associate members and it will represent those members before international bodies and organizations. Additionally, the Confederation will promote, develop and Strengthen internal audit practices in member states through the following:

  • Increasing the level of awareness of internal auditing standards and the techniques and methods of their application.
  • Institutional support for members through workshops, training, translation, and upgrading of knowledge
  • Issuing directives and instructions for the implementation of internal audit work
  • Increasing the level of professional qualification of internal audit personnel and issuing profession certificates
  • Preparing research, studies, and publications related to the internal audit profession

Dr. Alangari stressed that the ARABCIIA is developing cooperation with the entities within the Arab region for strategic alignment that adds professional and practical value to the internal audit profession, enabling it to achieve its functional mission, goals, and delivering its mandate. He stated that signing this MOU with IIA Global at this early stage in the establishment of the Confederation, and having The IIA's Global Board Chair and CEO present in the signing ceremony, clearly reflect the vision to carry this strategic alignment forward. He indicated that the MoU signing is a major opportunity for enhancing cooperation and developing the profession in the Arab region, considering that IIA Global is the leader for all internal auditing profession around the world.

The IIA has existing MoUs with regional bodies in Europe, Asia-Pacific, Africa, Latin America, and francophone countries. The new agreement with ARABCIIA covers a vital and rapidly-growing region and ensures that the profession's fastest growing region will adhere to – and be supported by – the best-in-class standards established by The IIA.

"The IIA and the affiliates that comprise the ARABCIIA regional body all recognize the value of maintaining a strong relationship," said Ybarra. "This agreement will allow our affiliates to maintain local organization, while also benefitting from regional collaboration. We're all excited about the potential for future growth that this agreement will enable."

About The Institute of Internal Auditors

The Institute of Internal Auditors (IIA) is an international professional association that serves more than 230,000 global members and has awarded more than 185,000 Certified Internal Auditor (CIA) certifications worldwide. Established in 1941, The IIA is recognized throughout the world as the internal audit profession's leader in standards, certifications, education, research, and technical guidance. For more information, visit theiia.org.

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SOURCE The Institute of Internal Auditors

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

 Wed, 08 Feb 2023 02:17:00 -0600 en text/html https://www.benzinga.com/pressreleases/23/02/n30818372/the-institute-of-internal-auditors-signs-mou-with-new-arabciia-regional-body Killexams : The Institute of Internal Auditors' General Audit Management Conference to be held March 13-15

Interactive sessions focus on the latest trends and best practices in internal audit

LAKE MARY, Fla., Feb. 2, 2023 /PRNewswire/ -- The Institute of Internal Auditors - (IIA) - the internal audit profession's leader in standards, certifications, education, research, and technical guidance worldwide – will host its annual General Audit Management (GAM) conference from March 13-15 in Grapevine, Texas, along with a virtual attendee option.

Institute of Internal Auditors Logo (PRNewsfoto/The Institute of Internal Auditors)

The IIA's GAM conference is designed to help internal audit executives stay on top of the biggest changes occurring in the profession and discuss how best to navigate and stay ahead of global trends.

"The GAM conference is our largest 2023 event in North America," said IIA President and CEO Anthony J. Pugliese, CIA, CPA, CGMA, CITP. "It's an opportunity for internal audit leaders to come together to discuss the issues that are driving business and re-shaping their organizations and our profession. This is an exciting time to be an internal auditor; there are new opportunities emerging every day and a growing business need for the kinds of expertise and insights that only an internal auditor can provide. GAM is the best opportunity to glimpse into the future of internal audit and understand how The IIA is helping to build that future."

The conference features more than 35 interactive sessions focused on emerging Topics in the internal audit profession, including:

  • Anthony Pugliese's keynote, which will focus on current issues shaping the profession, such as ESG and cybersecurity, the future of the profession, The IIA's historic project to reimagine its global Standards, and more.

  • The emergence of artificial intelligence and how it can be used effectively for agile planning and risk assessment, as well as some of the downsides and ethical dilemmas associated with it.

  • An exploration of digital internal audit, including the upside and risks of the Metaverse.

  • A discussion of risks in cash-intensive industries like cannabis.

  • The importance of promoting diversity, equity, and inclusion initiatives to Strengthen employee retention.

  • The common challenges facing internal auditors as they assess the evolving risk landscape around environmental, social, and governance (ESG) issues and begin their pathway to ESG assurance.

  • The current state of cryptocurrency following the collapse of FTX, the regulatory conditions associated with it, and an overview of the practical applications of cryptocurrency and blockchain.

  • The emergence of cyber risk and how to develop an efficient threat-focused cyber risk program.

The IIA will also release its 2023 North American Pulse of Internal Audit report, which provides an annual snapshot of the state of the profession and serves as a valuable benchmarking tool for internal audit teams and their organizations.

GAM also features a pre-conference workshop that will help prepare attendees for the changes stemming from The IIA's IPPF Evolution project. Attendees will learn how Standards changes relate to quality assessments and how to create strategies for the timing of performing quality assessments considering the effective date of the new Standards.

Media representatives are invited to attend the GAM conference in person or virtually.

About The Institute of Internal Auditors 
The Institute of Internal Auditors (IIA) is an international professional association that serves more than 230,000 global members and has awarded more than 185,000 Certified Internal Auditor (CIA) certifications worldwide. Established in 1941, The IIA is recognized throughout the world as the internal audit profession's leader in standards, certifications, education, research, and technical guidance. For more information, visit theiia.org.

Cision

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SOURCE The Institute of Internal Auditors

 Thu, 02 Feb 2023 07:32:00 -0600 en-US text/html https://www.yahoo.com/now/institute-internal-auditors-general-audit-213000129.html Killexams : Japanese rocket launches radar spy satellite

A Japanese radar satellite took flight on Wednesday evening (Jan. 25), adding to the nation's reconnaissance capabilities.

An H-IIA rocket topped with the IGS (Intelligence Gathering Satellite) Radar 7 spacecraft lifted off from Japan's Tanegashima Space Center Wednesday at 8:50 p.m. EST (0150 GMT and 10:50 a.m. local Japan time on Jan. 26).