Seek to profit in all kinds of markets by pursuing leveraging and other speculative investment practices

Are subject to very few regulatory controls

Also have voluntarily restricted investment to wealthy investors through high investment minimums (e.g. $1 million)

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

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

Mutual fund purchases are confirmed on a timely basis

Mutual fund switches are not authorized by the client

Not all misstatements will be material enough to affect the fair presentation of the financial statement. A material misstatement is one that the auditors determine would change or influence the option of a reasonable person relying on the financial statements for nformation. Ultimately, auditors must exercise judgment to assess materiality based on the qualitative nature of the misstatements and their quantitative extent. Materiality is also based on auditors' assessment of control risk levels in the organization. The following factors may influence the auditors' assessment of control risk EXCEPT:

Management's awareness or lack of awareness of applicable laws and regulations

Client policy regarding such matters as acceptable operating practices and codes of conduct

Assignment of responsibility and delegation of authority to deal with such matters as organizational goals and objectives, operating functions, and regulatory requirements

What does the abbreviation SIC stands for?

Standard Industrial Classification

Southeastern Illinois Compendium

Red color indicates market or share price is going down

Measure a company's capital structure

Leverage ratios are designed to

Measure a company's capital structure

Measure the quality of a company's operations

Measure a company's ability to cover its short-term obligations

All of the following steps are involved in estimating the earnings stream, EXCEPT:

Estimating corporate liabilities and assets

Estimating corporate earnings before taxes

Estimating corporate liabilities and assets

Estimating corporate earnings after taxes

All of the following are the characteristics of the individual investor, EXCEPT:

They maintain relatively constant profile overtime

They are characterized by their personalities

They maintain relatively constant profile overtime

They have great freedom in what they can do with regard to investing.

They define risk as losing money.

Of the following statements identify the advantage of the market measures to the investor.

These measure quickly judge the overall portfolio performance

These measures identify the population to be measured and its method

These measures offer equivalents for common sizes and metric units

These measures regulate the access to and cost of imports and exports

These measure quickly judge the overall portfolio performance

Which of the following is NOT true about technical analysis?

Its success would mean markets are not efficient

It requires some subjective decision-making

It requires much accounting information

Its success would mean markets are not efficient

Technical analysis is older than fundamental analysis

ABA CTFA Practice Test 16 - Free Online Exam Prep & Questions

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

ABA CTFA Practice Test 16

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ABA CTFA Practice Tests

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