Factor/s that influences/influence the state of an organization's control environment is/are:

A. Organizational history of control weakness or violations

B. Whether management emphasizes and values competence, integrity, and ethical behavior

C. An inconsistent or unfair employee performance evaluation, compensation and promotion system.

D. All of these

Deposit accounts are:

A. Interest bearing accounts

B. Non-interest bearing accounts

C. Tax bearing accounts

D. Either A or B

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

A. Cash flows

B. Liabilities

C. Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information

D. Liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information

Auditors should be aware that the investment objectives of a mutual fund are usually based on a risk profile outlined in the fund prospectus. For example, aggressive growth funds may invest in highly volatile stock issues and a money market fund may invest in lo risk money market instruments. Other funds have investment objectives based on the type or location of companies they invest in, such as:

A. Funds that invest only in non-profit organizations

B. Funds that invest only in environmentally conscious companies

C. Funds that invest only in U.S. government organizations

D. None of these

The enterprise- wide risk management approach focuses both on familiar financial risks and harder to measure--though equally important:

A. Strategic, business level and reputational risks

B. Strategic, operational and reputational risks

C. Strategic, business level and operational level risks

D. None of these

The federal open market committee (FOMC) board sets reserve requirements and shares the responsibility with the reserve banks for:

A. Interest rate policy

B. Premium policy

C. Discount rate policy

D. All of these

_________ are future economic benefits controlled by an entity.

A. Stocks

B. Assets

C. Equity

D. None of these

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

A. Variable life insurance

B. Universal life insurance

C. Term life insurance

D. Straight life insurance

A gold producer wants to hedge his loses attributable to a fall in the price of gold for his current gold currency. This is an example of:

A. Currency Swaps

B. Commodity Swaps

C. Interests rate Swaps

D. All of these

Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

A. Equity indices

B. Stock exchange indices

C. OTC market indices

D. All of these