The purpose of this study guide is to help you prepare to pass the Certified Financial Services Auditor (CFSA®) examination. This product is also available in English on CD-ROM or in Spanish as a workbook.

The guide provides a general overview of the topics that will be covered in the exam. However, it is critical that you perform additional study in areas where your experience or background dictates the need for additional review. A list of reference materials is included to provide additional resources to supplement your study.

Table of Contents

Volume 1 of 2

Reviewed and Contributors…………………………………………………………………………………………v

Dedication………………………………………………………………………………………………………………….vii

About the Authors………..…………………………………………………………………………………………….ix

Preface……………………………………………………………………………………………………………………….xi

Information on the Institute of Internal Auditors…………………………………………………..……1

Information on the CFSA Examination………………………………………………………………………….5

Domains for the CFSA Examination……………………………………………………………………………..15

Domains and Disciplines Matrix…………………………………………………………………………………..25

Additional Review Materials to Supplement This Guide……………………………………………….31

Preparing to Pass the CFSA Examination………………………………………………………………………35

Sample CFSA Questions……………………………………………………………………………………………….37

Suggested Solutions to Sample CFSA Questions…………………………………………………………….41

Guide Sections

I.             Financial Services Auditing………………………………………………………………………..………45

II.            Auditing Financial Services Products…………………………………………………………….….123

III.           Auditing Financial Services Processes……………………………………………………….………187

IV.          The Regulatory Environment………………………………………………………………………….…275

Volume 2 of 2

V.            Banking Discipline…………………………………………………………………………………………..…323

VI.          Insurance Discipline…………………………………………………………………………………………...477

VIII.        Securities Discipline…………………………………………………………………………………………….651

Appendices

Appendix A- Questions, Comments, or Corrections Concerning the CFSA Study Guide…….773

Appendix B- The IIA’s International Standards for the Professional Practice of Internal Auditing….775