Data Reconciliation Across Financial Systems CT-FT Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is a key benefit of automating data reconciliation processes?

   • AReduces manual effort and the likelihood of human error.
   • BGuarantees that all discrepancies are automatically resolved.
   • CEliminates the need for data quality checks.
   • DRemoves the requirement for audit trails.
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   What is a preventive measure to reduce data quality issues that affect reconciliation?

   • ADeleting records that do not match.
   • BPerforming reconciliation less frequently.
   • CImplementing data validation rules at the point of entry.
   • DIgnoring minor discrepancies.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A reconciliation process between a bank's core system and its reporting system flags a set of records as mismatched. The tester investigates and finds that the same transaction appears twice in the reporting system but only once in the core system. What type of discrepancy is this?

   • AMissing record
   • BDuplicate record
   • CMismatched field
   • DAggregation error
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A bank is required to provide regulators with evidence that its daily reconciliation was performed correctly. The bank's current reconciliation tool logs only the final totals and the time of the run. The regulator has asked for more detailed evidence. What is the most important enhancement to the audit trail?

   • AIncrease the frequency of reconciliation to hourly
   • BAdd logging of individual transaction matches and discrepancies
   • CStore the reconciliation logs in a separate database
   • DAdd a summary report of the reconciliation results
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   During the data comparison step of reconciliation, what is the primary activity performed?

   • ALoading data into the target system.
   • BMatching records from different systems based on defined keys and identifying differences.
   • CDeleting duplicate records from the target system.
   • DCorrecting data errors directly in the source system.
   Reveal Solution Discussion Select an answer first