A publicly traded bank is implementing a new system that calculates credit risk and generates financial reports. The system also stores customer personal data. The compliance team must design tests to satisfy Basel III, SOX, and GDPR. Which testing strategy is most comprehensive?

Test only internal controls over financial reporting and data subject access rights.

Test only credit risk calculations and internal controls over financial reporting.

Test only credit risk calculations and data subject access rights.

Test credit risk calculations, test internal controls over financial reporting, and test data subject access rights.

A bank is testing a new anti-money laundering (AML) system. Which testing activity is most directly required by AML regulations?

Confirming that the system calculates interest correctly for savings accounts.

Verifying that the system flags transactions above a threshold and generates suspicious activity reports.

Ensuring that the system's user interface is intuitive for bank tellers.

Validating that the system's database is encrypted at rest.

A bank is testing a new system that calculates both credit risk and market risk. The compliance team must design tests to satisfy Basel III requirements. Which testing approach is most appropriate?

Test only credit risk calculations, as they are more important.

Test that the system uses the same formula for both credit and market risk.

Test the accuracy of both credit risk and market risk calculations against Basel III formulas.

Test only market risk calculations, as they are more complex.

What is the primary purpose of the Sarbanes-Oxley Act (SOX)?

To regulate the processing of personal data of EU citizens

To standardize international accounting practices

To ensure banks maintain adequate capital reserves

To protect investors by improving the accuracy and reliability of corporate financial disclosures

Certified Tester Finance Testing

Domain 2Objective 2

Key Financial Regulations and Their Testing Relevance CT-FT Practice Questions (Page 3)

Part of the Compliance Testing domain, which makes up ~23% of our current practice bank. ISTQB does not publish an official question count, but from its 60-minute exam (~25–40 total, ~6–9 in this domain), expect 1–2 from this objective — we provide 24 practice questions to prepare you well beyond it. (estimate)

24questions here

5free pages

5concepts

Questions 11–15

11foundation · easy
Which of the following is a major financial regulation that primarily focuses on capital adequacy and risk management for banks?
Select an answer first
12expert · hard
A publicly traded bank is implementing a new system that calculates credit risk and generates financial reports. The system also stores customer personal data. The compliance team must design tests to satisfy Basel III, SOX, and GDPR. Which testing strategy is most comprehensive?
Select an answer first
13application · medium
A bank is testing a new anti-money laundering (AML) system. Which testing activity is most directly required by AML regulations?
Select an answer first
14expert · hard
A bank is testing a new system that calculates both credit risk and market risk. The compliance team must design tests to satisfy Basel III requirements. Which testing approach is most appropriate?
Select an answer first
15foundation · easy
What is the primary purpose of the Sarbanes-Oxley Act (SOX)?
Select an answer first

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