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NEW QUESTION: 1
An auditor ordinarily sends a standard confirmation request to all banks with which the client has done
business during the year under audit, regardless of the year-end balance. A purpose of this procedure is
to:
A. Request a cutoff bank statement and related checks be sent to the auditor.
B. Seek information about contingent liabilities and security agreements.
C. Detect kiting activities that may otherwise not be discovered.
D. Provide the data necessary to prepare a proof of cash.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The standard confirmation request seeks information on contingent liabilities and
security agreements in addition to information related to deposit account balances.
Choice "A" is incorrect. The standard confirmation request does not provide all of the data necessary to
prepare a "proof of cash" (i.e., bank reconciliation), since it only confirms the balances at the end of a
period, and does not provided information about the activity during the period under audit. Such
information is necessary to perform a bank reconciliation and would be provided in a bank statement.
Choice "B" is incorrect. A request for a cut-off statement, and not the standard bank confirmation form, is
used to obtain a cut-off bank statement and related checks.
Choice "C" is incorrect. The bank cut-off statement, not the standard confirmation request, is used to
detect kiting activities that may not otherwise be discovered.

NEW QUESTION: 2
John Green, CFA, is a sell-side technology analyst at Federal Securities, a large global investment banking and advisory firm. In many of his recent conversations with executives at the firms he researches, Green has heard disturbing news. Most of these firms are lowering sales estimates for the coming year. However, the stock prices have been stable despite management's widely disseminated sales warnings. Green is preparing his quarterly industry analysis and decides to seek further input. He calls Alan Volk, CFA, a close friend who runs the Initial Public Offering section of the investment banking department of Federal Securities.
Volk tells Green he has seen no slowing of demand for technology IPOs. "We've got three new issues due out next week, and two of them are well oversubscribed." Green knows that Volk's department handled over 200 IPOs last year, so he is confident that Volk's opinion is reliable. Green prepares his industry report, which is favorable. Among other conclusions, the report states that "the future is still bright, based on the fact that 67% of technology IPOs are oversubscribed." Privately, Green recommends to Federal portfolio managers that they begin selling all existing technology issues, which have "stagnated," and buy the IPOs in their place.
After carefully evaluating Federal's largest institutional client's portfolio, Green contacts the client and recommends selling all of his existing technology stocks and buying two of the upcoming IPOs, similar to the recommendation given to Federal's portfolio managers. Green's research has allowed him to conclude that only these two IPOs would be appropriate for this particular client's portfolio. Investing in these IPOs and selling the current technology holdings would, according to Green, "double the returns that your portfolio experienced last year." Federal Securities has recently hired Dirks Bentley, a CFA candidate who has passed Level 2 and is currently preparing to take the Level 3 CFA® exam, to reorganize Federal's compliance department.
Bentley tells Green that he may be subject to CFA Institute sanctions due to inappropriate contact between analysts and investment bankers within Federal Securities. Bentley has recommended that Green implement a firewall to rectify the situation and has outlined the key characteristics for such a system.
Bentley's suggestions are as follows:
1. Any communication between the departments of Federal Securities must be channeled through the compliance department for review and eventual delivery. The firm must create and maintain watch, restricted, and rumor lists to be used in the review of employee trading.
2. All beneficial ownership, whether direct or indirect, of recommended securities must be disclosed in writing.
3. The firm must increase the level of review or restriction of proprietary trading activities during periods in which the firm has knowledge of information that is both material and nonpublic.
Bentley has identified two of Green's analysts, neither of whom have non-compete contracts, who are preparing to leave Federal Securities and go into competition. The first employee, James Ybarra, CFA, has agreed to take a position with one of Federal's direct competitors. Ybarra has contacted existing Federal clients using a client list he created with public records. None of the contacted clients have agreed to move their accounts as Ybarra has requested. The second employee, Martha Cliff, CFA, has registered the name Cliff Investment Consulting (CIC), which she plans to use for her independent consulting business.
For the new business venture, Cliff has developed and professionally printed marketing literature that compares the new firm's services to that of Federal Securities and highlights the significant cost savings that will be realized by switching to CIC. After she leaves Federal, Cliff plans to target many of the same prospects that Federal Securities is targeting, using an address list she purchased from a third-party vendor. Bentley decides to call a meeting with Green to discuss his findings.
After discussing the departing analysts. Green asks Bentley how to best handle the disclosure of the following items: (1) although not currently a board member. Green has served in the past on the board of directors of a company he researches and expects that he will do so again in the near future; and (2) Green recently inherited put options on a company for which he has an outstanding buy recommendation.
Bentley is contemplating his response to Green.
According to CFA Institute Standards of Professional Conduct, which of the following statements related to Green's investment recommendation to the large institutional client is TRUE?
A. Green has misrepresented the expected performance of the IPOs and has not dealt fairly with clients.
B. Green has misrepresented the expected performance of the IPOs, but has dealt fairly with clients.
C. Green has not misrepresented the expected performance of the IPOs, but he has not dealt fairly with clients.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
By telling the institutional client that the IPO shares will double the performance that he experienced last year, Green has essentially guaranteed the performance of the IPO shares in violation of Standard 1(C) Misrepresentation. Green has also given the client a recommendation in advance of all other institutional and, presumably, many individual clients. This is a violation of Standard 111(B) Fair Dealing. (Study Session 1, LOS 2.a)

NEW QUESTION: 3
Which three statements about a flow-based antivirus profile are correct? (Choose three.)
A. FortiGate buffers the whole file but transmits to the client simultaneously.
B. Flow-based inspection uses a hybrid of scanning modes available in proxy-based inspection.
C. IPS engine handles the process as a standalone.
D. If the virus is detected, the last packet is delivered to the client.
E. Optimized performance compared to proxy-based inspection.
Answer: A,B,E

NEW QUESTION: 4
Consider the widget template snippet, which uses Knockout's containerless control flow syntax based on comment tags:

Under what condition will <li>Item #2</li> be displayed?
A. If the shopper has a product in his/her cart
B. Item #2 will never be displayed
C. if the Product view model is available on the page
D. Item #2 will always be displayed
Answer: A