NISM Series-XIV: Internal Auditors for Stock Brokers Practice Exam

The NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination is offered by the National Institute of Securities Markets (NISM) in India. Earning this certification equips you with the essential knowledge and skills to perform internal audits of stockbroker operations, ensuring compliance with regulatory requirements and best practices.

Who Should Take This Exam?

This NISM certification is ideal for individuals aspiring to careers in internal audit functions within stockbroking firms. Here are some specific groups who can benefit:

• Internal Audit Professionals: Individuals seeking to specialize in internal auditing for stock brokers, focusing on risk management and regulatory compliance.
• Accounting and Finance Professionals: Expanding their knowledge of the securities market and internal audit practices specific to stockbrokers.
• Compliance Officers: Gaining a deeper understanding of internal controls and risk management frameworks within stockbroking firms.

There are no formal prerequisites for taking the exam. However, a foundational understanding of accounting principles and auditing procedures is recommended.

Roles and Responsibilities

• Internal Auditor (Stock Broking): Conducting internal audits to assess the adequacy of internal controls, identify potential risks, and ensure compliance with regulations.
• Audit Assistant: Supporting senior internal auditors in conducting audits, gathering evidence, and preparing audit reports.
• Compliance Analyst (Internal Audit Focus): Analyzing internal audit findings and working with management to implement corrective measures to address identified control weaknesses.

Exam Details 

• Delivery Method: Typically computer-based exam at NISM exam centers
• Duration: The duration of the exam may vary depending on the number of questions. It typically ranges from 3 to 4 hours.
• Passing Score:60%.
• Validity: The certification is valid for three years.

Examination Objectives

On successful completion of the examination the candidate should:

• Know regulatory framework under which the stock brokers perform their various activities.
• Understand the various operations performed by the Stock brokers
• Understand the various compliance and reporting requirements from audit perspective