AFE

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?A . Billing basisB . Paying commission basisC . Item basisD . Bushiness costsView AnswerAnswer: C

Which control includes the procedures for system design, including the acquisition of software packages, should encourage active participation by the accounting department and internal auditors?A . Organizations and operations controlB . System development controlC . Access controlD . Procedural controlView AnswerAnswer: A

Reduction for salvage is:A . the estimated amount payable by the vendor from the disposition of damaged or recovered propertyB . the actual amount receivable by the claimer from the temperament of damaged propertyC . the actual amount payable by the investor from the disposition of damaged or recovered propertyD...

Home office record-maintenance methods may include:A . duplication of branch recordsB . maintenance of detailed entries for analytical purposesC . use of planning procedures from main office for both premiums and cashD . All of the aboveView AnswerAnswer: A

Excess liability:A . covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in a predetermined planning.B . covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in an...

According to Securities and Exchange Commission (SEC), “the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise” is called:A . ControlB . InfluenceC . ActivityD . EntitlementView...

In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract may be extended upon mutual agreement of the buyer-lender and seller-borrower.A . Financial servicingB . Price-capC . RolloverD . Purchasing agreementsView AnswerAnswer: C

What uses valuation techniques to convert future amounts to a single present amount?A . Risk approachB . Market approachC . Income approachD . Cost approachView AnswerAnswer: C

Which of the following is the objective to the evaluation and risk-accepting function?A . Evaluating and acceptability of riskB . Determining the premiumC . Evaluation of entity’s capacity to retain riskD . All of the aboveView AnswerAnswer: D

Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.A . TrueB . FalseView AnswerAnswer: B