FREE CBA Regulatory Compliance Audits Questions and Answers

Question 1

An auditor reviewing a bank's compliance with the Bank Secrecy Act (BSA) discovers a pattern of cash deposits into a single account across multiple branches on the same day, with each deposit being slightly under the $10,000 reporting threshold.
This activity is a significant indicator of:

Accepted Answer

Structuring

Answer

Kiting

Answer

Redlining

Answer

Wash trading

Question 2

Which of the following is the primary objective of a compliance audit focused on the Community Reinvestment Act (CRA)?

Accepted Answer

To assess whether the bank is effectively meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.

Answer

To ensure the bank has adequate controls to prevent money laundering and terrorist financing.

Answer

To verify that the bank is not engaging in predatory lending practices in any of its operating areas.

Answer

To confirm the accuracy and timeliness of the bank's quarterly financial reports to shareholders.

Question 3

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?

Accepted Answer

Fair and Accurate Credit Transactions Act (FACTA)

Answer

Gramm-Leach-Bliley Act (GLBA)

Answer

Bank Secrecy Act (BSA)

Answer

Truth in Lending Act (TILA)

Question 4

A bank's marketing department launches a campaign for a new savings account, advertising it as "Completely Free." An auditor's review finds that while there are no monthly maintenance fees, a fee is charged if the account balance drops below $100. This practice would most likely be a violation of which regulation?

Accepted Answer

Regulation DD (Truth in Savings)

Answer

Regulation Z (Truth in Lending)

Answer

Regulation CC (Expedited Funds Availability)

Answer

Regulation E (Electronic Fund Transfers)

Question 5

When performing a regulatory compliance audit of the Gramm-Leach-Bliley Act (GLBA), which of the following is the auditor's MOST critical area of focus?

Accepted Answer

Evaluating the adequacy of the bank's program to protect the confidentiality and security of customers' nonpublic personal information.

Answer

Ensuring the timely and accurate filing of Currency Transaction Reports.

Answer

Verifying that all loan disclosures provide a clear Annual Percentage Rate (APR).

Answer

Assessing the bank's efforts to provide credit services to all segments of its community.

Question 6

In the initial planning phase of a compliance audit, what is the auditor's MOST important first step?

Accepted Answer

Performing a comprehensive risk assessment to identify the laws and regulations applicable to the bank's operations and products.

Answer

Requesting and reviewing all prior audit reports and regulatory examination findings.

Answer

Developing the detailed audit program and testing procedures.

Answer

Conducting preliminary interviews with department heads and key personnel.

An auditor reviewing a bank's compliance with the Bank Secrecy Act (BSA) discovers a pattern of cash deposits into a single account across multiple branches on the same day, with each deposit being slightly under the $10,000 reporting threshold.This activity is a significant indicator of:

An auditor reviewing a bank's compliance with the Bank Secrecy Act (BSA) discovers a pattern of cash deposits into a single account across multiple branches on the same day, with each deposit being slightly under the $10,000 reporting threshold.
This activity is a significant indicator of: