IIA-CFSA · Question #204
Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining…
The correct answer is A. Control and monitoring activities related to purchase and reverse purchase agreement. See the full explanation below for the reasoning.
Question
Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining collateral from the counterparty Marking to market all collateral daily; if a deficit (within established guidelines) exists, additional collateral may be obtained from the counterparty Reconciling the repurchase and reverse repurchase subsidiary ledgers to the stock record and general ledger daily. Out-of-balances are recorded as suspense items and researched immediately These are actually:
Options
- AControl and monitoring activities related to purchase and reverse purchase agreement
- BReview activities where broker-dealer -dealers finance proprietary or customer activity
- CAuditors should be aware of the following control and monitoring activities typically
- DNone of these
How the community answered
(58 responses)- A76% (44)
- B7% (4)
- C3% (2)
- D14% (8)
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