1|Page
AU 60 Final Exam 2025 – Updated Practice
Questions, Study Guide & Answer Key for Ethics
and Auditing Principles
Prepare for the AU 60 Final Exam 2025 with the latest study materials and practice tests.
Includes updated questions, detailed explanations, and key concepts covering ethics,
auditing principles, risk assessment, and professional conduct. Ideal for students and
professionals pursuing insurance, auditing, or financial certification programs.
• AU 60 Final Exam 2025
• AU 60 Exam study guide
• AU 60 Final Exam questions and answers
•
While trend analysis can be used on various financial statements,
it is most commonly applied to
A
Balance sheets.
,2|Page
B
Income statements.
C
Changes in equity statements.
D
Cash flow statements. - ANSWER-B
Which one of the following components of insurance rates
includes the amount needed for premium taxes and fees paid to
regulatory organizations?
Available answer optionsSelect only one option
A
Expense provision
B
Pure premium
C
Contingencies factor
D
Loss adjustment expenses - ANSWER-A
,3|Page
Publicly traded companies must file a Form 10-K annually with the
Securities and Exchange Commission (SEC). Which one of the
following best describes the information contained in Form 10-K?
A
It is a form filed with the SEC to announce major events that
shareholders should know about.
B
It is a report containing unaudited financial statements and a
MD&A report.
C
It is similar to the company annual report but contains more
detailed information.
D
It highlights certain company data that has resulted in a positive
or negative trend. - ANSWER-C
Which one of the following financial reporting services focuses on
the trucking industry?
, 4|Page
A
Dun & Bradstreet
B
Experian
C
Equifax
D
Central Analysis Bureau - ANSWER-D
Which one of the following statements is true regarding loss trend
analysis?
Available answer optionsSelect only one option
A
The current year's losses are the best indication of future loss
experience.
B
Historical premiums and losses are needed for loss trend
analysis.
AU 60 Final Exam 2025 – Updated Practice
Questions, Study Guide & Answer Key for Ethics
and Auditing Principles
Prepare for the AU 60 Final Exam 2025 with the latest study materials and practice tests.
Includes updated questions, detailed explanations, and key concepts covering ethics,
auditing principles, risk assessment, and professional conduct. Ideal for students and
professionals pursuing insurance, auditing, or financial certification programs.
• AU 60 Final Exam 2025
• AU 60 Exam study guide
• AU 60 Final Exam questions and answers
•
While trend analysis can be used on various financial statements,
it is most commonly applied to
A
Balance sheets.
,2|Page
B
Income statements.
C
Changes in equity statements.
D
Cash flow statements. - ANSWER-B
Which one of the following components of insurance rates
includes the amount needed for premium taxes and fees paid to
regulatory organizations?
Available answer optionsSelect only one option
A
Expense provision
B
Pure premium
C
Contingencies factor
D
Loss adjustment expenses - ANSWER-A
,3|Page
Publicly traded companies must file a Form 10-K annually with the
Securities and Exchange Commission (SEC). Which one of the
following best describes the information contained in Form 10-K?
A
It is a form filed with the SEC to announce major events that
shareholders should know about.
B
It is a report containing unaudited financial statements and a
MD&A report.
C
It is similar to the company annual report but contains more
detailed information.
D
It highlights certain company data that has resulted in a positive
or negative trend. - ANSWER-C
Which one of the following financial reporting services focuses on
the trucking industry?
, 4|Page
A
Dun & Bradstreet
B
Experian
C
Equifax
D
Central Analysis Bureau - ANSWER-D
Which one of the following statements is true regarding loss trend
analysis?
Available answer optionsSelect only one option
A
The current year's losses are the best indication of future loss
experience.
B
Historical premiums and losses are needed for loss trend
analysis.
