Certified Financial Services Auditor CFSA ExamFOCUS Essential Study References
* we updated this book in arch 2015 *
The Certified Financial Services Auditor (CFSA) is a specialty certification which measures an individual’s knowledge of, and proficiency in, audit principles and practices within the banking, insurance, and securities financial services industries. The one-part CFSA exam includes 125 multiple-choice questions, covering:
1. Financial Services Auditing
2. Auditing Financial Services Products
3. Auditing Financial Services Processes
4. The Regulatory Environment
This is a highly condensed set of study reference material. The TOC is listed below:
INTELLECTUAL PROPERTIES, TRADEMARKS AND COPYRIGHTS 1
CONTENTS UPDATE 2
PAGE FORMATTING AND TYPEFACE 2
THE EXAM 2
INTERNAL AUDIT OF FINANCIAL INSTITUTIONS 5
ORGANIZATION AND GOVERNANCE 7
GOVERNANCE 8
AGENCY THEORY 10
THE IIA’S INTERNATIONAL STANDARDS 11
AUDITS 12
INTERNAL AUDIT 14
THE CHARTER 15
HOW TO PROCEED 16
AUDIT PLANNING 17
RESOURCES FOR PERFORMING THE AUDIT 18
ENGAGEMENT LETTER AND ENGAGEMENT PARTNER 18
PROFESSIONALISM 19
AUDIT EVIDENCE 19
SUPERVISION 21
FIELDWORKS 22
QUALIFIED OPINION VS ADVERSE OPINION VS DISCLAIMER OF OPINION 23
AUDIT FOLLOW-UP 24
ETHICS AND INDEPENDENCE 25
CLASSES OF IMPAIRMENTS TO INDEPENDENCE 27
INTERNAL CONTROL 28
TYPES OF CONTROL 29
IS CONTROLS 30
REGULATORY ENVIRONMENT AND STANDARDS 33
THE GRAMM-LEACH-BLILEY ACT 35
THE SARBANES-OXLEY ACT 35
THE USA PATRIOT ACT 36
TRUTH IN LENDING DISCLOSURE 37
REAL ESTATE SALES DISCLOSURES 37
INSIDER TRANSACTIONS 38
IFRS AND IAS 38
GAAP, FASB AND SFAS 39
SAS 70 40
REPORTING CONTINGENCIES 41
REPORTING EARNINGS 41
OFF-BALANCE-SHEET ENTITIES 42
PURCHASE ACCOUNTING VS POOLING OF INTEREST 43
RISK MANAGEMENT 45
MITIGATION 45
RISK ANALYSIS VS RISK ASSESSMENT 46
RISK ANALYSIS TOOLS 47
LIABILITY RISK AND MANAGEMENT 47
FINANCIAL RISK MANAGEMENT 49
FINANCIAL THEORY, DEFINITIONS AND TRENDS 50
BOND, INDENTURE AND WARRANT 51
NPV 52
IRR 52
NPV VS IRR 53
CASH FLOW, INTERESTS AND PAYBACK 53
SHORT-TO-MID TERM INVESTMENT INSTRUMENTS 55
PRESENT WORTH, SINKING FUND AND OTHER CONCEPTS 55
FLOAT 57
LINE OF CREDIT 57
COMMERCIAL PAPER 57
RISK FINANCING 58
CASH CONVERSION CYCLE 58
DU PONT ANALYSIS 59
WORKING CAPITAL MANAGEMENT 60
WACC 61
OPERATING LEVERAGE 61
EVA 61
CREDIT ANALYSIS 62
TRADE CREDITS AND DEBT COLLECTION 63
OPEN-BOOK CREDIT VS DSO 63
ACCOUNTS RECEIVABLE 64
FACTORING AND FORFAITING 64
ASSET-BASED LENDING 64
INVOICE DISCOUNTING 65
PAYMENT INSTRUMENTS 66
DIVIDEND POLICIES, DRIPS, SPP AND RETIREMENT PLANS 69
RETIREMENT FUNDS AND THE TREASURY FUNCTION 71
RETIREMENT PLANS 71
FRAUD AND REPORTING 74
BRIBERY 74
ILLEGAL GRATUITY 74
CONFLICTS OF INTEREST 74
EMBEZZLEMENT 75
FALSE STATEMENTS AND FALSE CLAIMS 75
BREACH OF FIDUCIARY DUTY 75
FORENSIC ACCOUNTING AND AUDITING 76
LEASING ARRANGEMENTS 78
MONETARY POLICY AND FISCAL POLICY 80
ECONOMIC GROWTH, INFLATION AND CPI 80
BALANCE OF PAYMENTS AND BALANCE OF TRADE 81
MONEY SUPPLIES, FOREIGN EXCHANGE AND CURRENCY VALUATION 82
INTEREST RATES, BOND PRICES, YIELDS AND CREDIT RATINGS 83
NATIONAL DEBT, BORROWING LIMITS AND RATING DOWNGRADE 84
INSTRUMENTS FOR INTERNATIONAL TRADE 87
