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

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Art

5 months ago

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

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Leonie

5 months ago

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

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Francisca

4 months ago

D) All EXCEPT 'C'

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Margurite

4 months ago

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

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Theola

4 months ago

C) Mutual fund switches are not authorized by the client

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Hobert

4 months ago

B) Mutual fund purchases are confirmed on a timely basis

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Curtis

4 months ago

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

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Keva

5 months ago

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

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Queenie

5 months ago

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

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Florencia

5 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.

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Myra

4 months ago

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

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Nina

4 months ago

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

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Stefan

4 months ago

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

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Kenneth

5 months ago

I think the answer is A

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Fairy

5 months ago

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

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Kanisha

4 months ago

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

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Pauline

4 months ago

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

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Sherill

4 months ago

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

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Alton

4 months ago

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

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Levi

6 months ago

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

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Filiberto

5 months ago

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

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Tiara

5 months ago

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

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