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NEW QUESTION: 1
Which of the following activity/ies should be considered by the auditors whenever reviewing situations where broker-dealer finance proprietary or customer activity through collateralized bank loans?
A. Maintaining separate accounts in the general ledger for the securities collateralizing eachloan
B. 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 researchedimmediately
C. Obtaining collateral from the counterparty
D. Ensuring that customer, noncustomer, and firm bank loans are separately maintained and that procedures are in place to prevent commingling of collateral
Answer: A,D
NEW QUESTION: 2
A. 0
B. 1
C. 2
D. 3
E. 4
F. 5
G. 6
H. 7
Answer: F
NEW QUESTION: 3
A contract is renewed in which the terms, conditions and price have remained the same but the scope has changed. In order to maintain SOX compliance what should be done?
A. If a contract is renewed, it is mandatory to create a new contract in CDB.
B. Terms and conditions are the same, only scope has been changed. So a simple contract extension is all that is needed.
C. A new contract should be created in CDB as the scope has changed.
D. A simple contract extension is needed in CDB as the major terms and conditions are the same.
Answer: C
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