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Which TWO of the following are reasons for a company to comply with the Committee of Sponsoring Organisations of the Treadway Commission 2017 Enterprise Risk Management Framework (COSO Framework)?
Which TWO of the following are reasons for a company to comply with the Committee of Sponsoring Organisations of the Treadway Commission 2017 Enterprise Risk Management Framework (COSO Framework)?A . Complying with the COSO Framework will mean all employees of a company will comply with internal controlsB . Complying with...
Which of the following is most likely to explain the decision to choose model X over model Y?
K has several subsidiary companies. The directors of K's subsidiaries are paid an annual b onus based upon their particular subsidiary's reported profits. The directors of one of K's subsidiaries are considering the choice between two models of a machine. Which of the following is most likely to explain the...
Which of the following provisions would be appropriate for C to include m its ethical code in relation to its suppliers?
C is a large international supermarket chain. It has many thousands of suppliers and many thousands of potential suppliers competing for shelf space m its supermarkets. Which of the following provisions would be appropriate for C to include m its ethical code in relation to its suppliers? Select ALL that...
What was the total cost, including the cost of the option, of settling the payable?
VBN's home currency is the V$. On 1 January, VBN must make a payment of C$2 million on 31 March of that same year. On 1 January the spot exchange rate was V$1 = C$0.4. On 1 January VBN paid $180,000 for a call option to buy C$2 million for...
Which of the following statements are correct?
GHJ makes large export sales to customers in Country A, whose currency fluctuates significantly against GHJ's home currency. GHJ also makes large purchases from suppliers in Country A. All of these transactions are in Country A's currency. GHJ's Treasurer does not actively hedge currency risks because there is a natural...
A project requires a capital investment of £2.7million. The project will save £450,000 each year after taxation. Assume the savings are in perpetuity. The business risk of the venture requires a 15% discount rate. The company has to borrow £1million to finance the project at a rate of 9% and the net tax shield is 30%, the project supports debt which generates an interest tax shield of 0.30 x 0.09 x £1million, which is £27,000 per year in perpetuity.
A project requires a capital investment of £2.7million. The project will save £450,000 each year after taxation. Assume the savings are in perpetuity. The business risk of the venture requires a 15% discount rate. The company has to borrow £1million to finance the project at a rate of 9% and...
Which TWO of the following statements reflect an appropriate response by the board of directors to this report?
The internal audit department has just completed an investigation into the HR department's procedures relating to new staff appointments The head of HR is unhappy with the draft report prepared by the lead internal auditor The report lists several cases in which appointments were made despite the fact that one...
Why might the directors be reluctant?
The board of OKN is considering an investment opportunity that will require the company to borrow a large amount in month 10 of the current financial year and to invest it immediately in property, plant and equipment. This investment has a positive net present value that justifies the risk, but...
Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?
Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?A . LeadershipB . ReliabilityC . RemunerationD . HonestyE . AccountabilityView AnswerAnswer: A,C,E
Which of the following statements are valid?
H Ltd is a logistics company which is likely to be seeking a Stock Exchange listing shortly. The directors wish to strengthen the company's internal controls. Which of the following statements are valid?A . The Board should take direct responsibility itself for all organisational control and avoid delegating.B . The...
