CBA Cheat Sheet 2026

The 30 highest-yield CBA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When auditing a bank's data governance framework, which of the following is the MOST critical principle for an auditor to verify? → The establishment of clear ownership and accountability for critical data elements.
2. What is a red flag during an audit of teller operations? → Frequent cash discrepancies
3. What is the role of stress testing in risk management? → To evaluate resilience under adverse scenarios
4. How does diversification help in risk management? → Reduces risk by spreading exposure
5. Which ratio is commonly used to evaluate a bank’s profitability? → Return on Assets (ROA)
6. According to ACFE research, which fraud detection method uncovers the greatest percentage of occupational fraud cases? → Tips from employees, customers, or other parties
7. Why is consistency important in financial reporting? → It ensures valid year-to-year comparisons
8. Segregation of duties helps prevent which of the following? → Fraud and operational errors
9. What role does reconciliation play in banking operations? → Balancing internal records with external statements
10. How can an internal audit improve banking operations? → By enhancing operational efficiency through recommendations
11. According to the ACFE Fraud Triangle, which three elements must all be present for occupational fraud to occur? → Pressure, opportunity, and rationalization
12. What is 'check kiting' in the banking context? → Exploiting float time between banks to artificially inflate account balances
13. What does the term 'skimming' mean in the context of bank employee fraud? → Stealing cash or payments before they are recorded in the accounting system
14. According to ACFE Occupational Fraud studies, what is the most common category of fraud committed against financial institutions? → Asset misappropriation
15. What is the primary purpose of internal controls in a bank? → To ensure regulatory compliance and protect assets
16. What is the primary purpose of a fraud risk assessment in banking? → To identify and evaluate the likelihood and impact of potential fraud schemes
17. According to the FFIEC, which of the following is one of the five required pillars of a bank's BSA/AML compliance program? → Designation of a qualified BSA Compliance Officer.
18. What does a high debt-to-equity ratio indicate? → Potential financial risk
19. Which of the following is typically reviewed during a banking operations audit? → Transaction processing systems
20. What is the primary objective of risk management in banking? → To minimize potential losses and ensure stability
21. What is the primary objective of an operations audit in banking? → To assess operational efficiency and control
22. Which of the following best defines a compliance risk? → Violation of laws or regulations
23. During a review of a bank's Identity Theft Prevention Program, an auditor is primarily concerned with compliance with the rules promulgated under which act? → Fair and Accurate Credit Transactions Act (FACTA)
24. Which behavioral red flag most commonly indicates potential employee embezzlement at a bank? → An employee living beyond apparent financial means who refuses to take vacation
25. In the context of the 'Three Lines of Defense' model for risk management in a bank, which function serves as the third line? → The internal audit function.
26. Why are exception reports important in banking operations audits? → They highlight unusual transactions
27. Which organizational structure best reduces fraud risk in a bank's lending department? → Separating loan origination, credit approval, and loan servicing into distinct functions
28. Under the Bank Secrecy Act, within how many days of detecting a suspicious transaction must a bank file a Suspicious Activity Report (SAR)? → 30 days
29. Which type of bank fraud involves an employee creating fictitious loans to generate fraudulent commissions or misappropriate proceeds? → Loan origination fraud
30. When conducting a bank fraud investigation involving digital evidence, what is the correct first step in the evidence handling process? → Secure and forensically preserve digital evidence before conducting interviews or analysis