CFP Auditing Principles & Procedures 2

Question 1

Which audit procedure is most effective for detecting unauthorized access to a fintech platform's core banking APIs?

Accepted Answer

Review of API gateway access logs and OAuth token issuance records

Answer

API gateway logs and OAuth token records provide a direct trail of who accessed which endpoints and when, making them the primary evidence for detecting unauthorized access.

Question 2

In a fintech audit, 'control risk' is best described as:

Accepted Answer

The risk that internal controls will fail to prevent or detect material misstatements

Answer

Control risk is the probability that a client's internal controls will not prevent or detect a material misstatement, regardless of auditor procedures.

Question 3

A fintech auditor is assessing the adequacy of a company's disaster recovery plan. Which procedure provides the most reliable evidence?

Accepted Answer

Observing a live DR drill and comparing results to RTO/RPO targets

Answer

Observing a live drill and comparing outcomes against established RTO/RPO targets provides direct, independent evidence of whether controls operate as designed.

Question 4

Which of the following is an example of a substantive analytical procedure in a fintech audit?

Accepted Answer

Comparing month-over-month payment transaction volumes to identify anomalies

Answer

Substantive analytical procedures involve comparing financial or operational data to expected patterns to identify material misstatements or anomalies.

Question 5

Under PCAOB standards, when is it appropriate for an auditor to use the work of an internal audit function?

Accepted Answer

When the internal audit function has sufficient competence and objectivity, and the work is relevant

Answer

PCAOB AS 2605 permits external auditors to use internal audit work when they evaluate and conclude that the internal auditors have sufficient competence and objectivity.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Auditing Principles & Procedures 2