IIA Exam IIA-CFSA Topic 10 Question 48 Discussion

Actual exam question for IIA's Certified Financial Services Auditor exam

Question #: 48
Topic #: 10

[All Certified Financial Services Auditor Questions]

Some objectives of an audit related to mutual funds might include determining that:

AMutual fund checks are issued in accordance with firm policies and supported by valid trades

BMutual fund purchases are confirmed on a timely basis

CMutual fund switches are not authorized by the client

DAll EXCEPT ''C''

Show Suggested Answer

Suggested Answer: D

by Roslyn at Apr 12, 2024, 07:26 AM

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Paola

9 days ago

Yeah, I think you guys are on the right track. Although, you know what they say - 'the devil is in the details' when it comes to these audit questions!

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Emmett

11 days ago

Good point. Maybe option D is the best answer then, since it covers all the key objectives except for that client authorization piece.

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Aretha

11 days ago

You know, I'm not sure about option C. Wouldn't we want to make sure mutual fund switches are authorized by the client? That seems like an important control.

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Georgiana

13 days ago

Absolutely. And option B is also crucial - timely confirmation of purchases is essential to ensure proper accounting and reporting.

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Alexia

15 days ago

I agree. I would say option A is definitely important - we need to make sure the mutual fund checks are being issued properly and have valid supporting documents.

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Paulina

16 days ago

Hmm, this is an interesting question. I think the key objectives of an audit related to mutual funds would be to ensure proper controls over the transactions and balances.

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