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IIA

IIA-CFSA · Question #202

Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:

The correct answer is D. Establishing position and credit limits by counterparty. See the full explanation below for the reasoning.

Question

Auditors should be aware of the following control and monitoring activities typically associated with securities lending EXCEPT:

Options

  • AReviewing counterparties for credit worthiness and obtaining master trade agreements and
  • BEstablishing transaction limits by counterparty
  • CObtaining physical possession or control of all collateral
  • DEstablishing position and credit limits by counterparty

How the community answered

(34 responses)
  • A
    6% (2)
  • B
    3% (1)
  • C
    9% (3)
  • D
    82% (28)

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