Element 6 Revision 6.1.1 to 6.1.5 Professional services Quiz

What is the primary role of third-party auditors?

• Advising on tax returns

• Reviewing financial accounts

• Underwriting loans

• Providing insurance quotes

Which professional specialises in calculating and assessing future financial risks?

• Tax advisor

• Auditor

• Actuary

• Insurance broker

What is a key responsibility of corporate finance professionals?

• Marketing loans

• Advising on insurance portfolios

• Reviewing financial accounts

• Ensuring profitability and maximum value to shareholders

What does PII stand for?

• Personal Insurance Information

• Professional Indemnity Insurance

• Public Interest Initiative

• Professional Investment Information

What is the main purpose of a Service Level Agreement (SLA)?

• To provide tax advice

• To ensure clear standards of service

• To calculate financial risks

• To offer insurance claims advice

Which of the following is a risk associated with engaging third-party professionals?

• Increased profitability

• Ethical behaviour concerns

• Improved customer service

• Better compliance

Who would be responsible for advising on the most appropriate insurance portfolio?

• Claims analyst

• Actuary

• Insurance broker

• Lender

What is one of the limitations of Professional Indemnity Insurance (PII)?

• It always covers all types of claims

• It has no impact on premiums

• It may not cover all risks

Why might a business purchase Professional Indemnity Insurance (PII)?

• To increase profitability

• To ensure compliance with tax laws

• To protect against claims of professional negligence

• To provide loans to clients

What role do claims analysts play in the insurance sector?

• Underwriting loans

• Advising on insurance claims

• Reviewing financial accounts

• Marketing mortgages