IIA Exam IIA-CFSA Topic 2 Question 60 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 60
Topic #: 2

[All IIA-CFSA 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 Chantell at Sep 09, 2024, 06:48 PM

Limited Time Offer

25%

Off

Get Premium IIA-CFSA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Art

2 months ago

I believe the answer is D, because switches should not be authorized by the client

upvoted 0 times

...

Leonie

2 months ago

I'd be careful with C. Unauthorized fund switches could lead to some serious regulatory headaches. Gotta keep those clients happy!

upvoted 0 times

Francisca

1 months ago

D) All EXCEPT 'C'

upvoted 0 times

...

Margurite

1 months ago

Yeah, unauthorized switches can definitely cause some issues. It's important to follow firm policies.

upvoted 0 times

...

Theola

2 months ago

C) Mutual fund switches are not authorized by the client

upvoted 0 times

...

Hobert

2 months ago

B) Mutual fund purchases are confirmed on a timely basis

upvoted 0 times

...

Curtis

2 months ago

A) Mutual fund checks are issued in accordance with firm policies and supported by valid trades

upvoted 0 times

...

Keva

2 months ago

I'm more interested in the mutual fund cake than these boring audit objectives. Can we move on to the good stuff?

upvoted 0 times

...

Queenie

3 months ago

I agree with Kenneth, because checks should be supported by valid trades

upvoted 0 times

...

Florencia

3 months ago

This is a tricky one, but I think D is the best answer. Mutual fund switches should always be authorized by the client.

upvoted 0 times

Myra

2 months ago

Yes, B is crucial too to confirm mutual fund purchases in a timely manner.

upvoted 0 times

...

Nina

2 months ago

I think A is also important to ensure that checks are issued correctly and supported by valid trades.

upvoted 0 times

...

Stefan

2 months ago

I agree, D seems like the best answer. It's important for clients to authorize any switches.

upvoted 0 times

...

Kenneth

3 months ago

I think the answer is A

upvoted 0 times

...

Fairy

3 months ago

I'd go with D. Mutual fund switches need to be approved by the client, not the other way around.

upvoted 0 times

Kanisha

1 months ago

So, it seems like option D covers all the important objectives for an audit related to mutual funds.

upvoted 0 times

...

Pauline

1 months ago

True, and confirming mutual fund purchases in a timely manner is crucial for accuracy.

upvoted 0 times

...

Sherill

1 months ago

But it's also important to ensure that mutual fund checks are issued correctly and supported by valid trades.

upvoted 0 times

...

Alton

1 months ago

I agree, mutual fund switches should definitely be authorized by the client.

upvoted 0 times

...

Levi

3 months ago

Definitely A and B, but I'm not sure about C. Shouldn't we be authorizing client-initiated mutual fund switches?

upvoted 0 times

Filiberto

3 months ago

But D says all except C, so maybe it's not necessary to authorize client-initiated switches.

upvoted 0 times

...

Tiara

3 months ago

I think C is correct because client-initiated switches should be authorized.

upvoted 0 times

...