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Which of the following matters should normally be dealt with by SDF's audit committee?
SDF is a quoted company. Which of the following matters should normally be dealt with by SDF's audit committee?A . The external auditor has requested a higher fee than normal for the forthcoming financial year because new legislation will require additional audit work.B . The Head of Internal Audit is...
In relation to the above, which of the following statements are valid?
In the purchasing department, the purchasing manager selects and approves all suppliers, as they are the only person with sufficient experience to do so. They use a very limited number of suppliers because they can rely on these suppliers to provide goods of the quality required at a competitive price....
Which of the following steps would it be appropriate for C Ltd to take in the light of the proposed listing?
C Ltd is a private, family-owned company which is hoping to become listed on a recognised Stock Exchange within the next two years. At the moment, the Board of Directors comprises five directors; four of whom are from the founding family and all of whom are involved in the day-to-day...
Which TWO of these would be most likely to improve the overall control system?
N, a large company in the food production industry, has grown over the years by the acquisition of several smaller rivals. The company has ten branches located in its home country and has just opened a foreign branch for the first time. It has recently made some changes to the...
Which of the following are COSO key principles?
The Committee of Sponsoring Organisations (COSO) outlined six key principles of Enterprise Risk Management (ERM). Which of the following are COSO key principles?A . The creation of a risk aware culture.B . A comprehensive and holistic approach to risk management.C . Risk management is the responsibility of the risk committee.D...
Which of the following statements are true and which are false?
DRAG DROP The internal audit department should always give a report at the end of its audit. This report is intended to be useful and help the company going forward. The report should always include any recommendations for improvements. Which of the following statements are true and which are false?...
Z is a multinational pharmaceuticals company with operations across Europe, America and Asia
DRAG DROP Z is a multinational pharmaceuticals company with operations across Europe, America and Asia. It is currently investigating the possibility of setting up a chemical and specialist production facility in South America. This would be a multi $billion investment. What steps should Z take to manage the following risks...
Which of the following controls could M introduce to reduce defects and also increase profitability?
M, a manufacturing company, has had some problems with defects in one of the main products it produces. This product has been made by the company for many years and is very profitable. Last month it had over 300 defects reported by customers which is more than 15% of products...
Which of the following describe the Board's responsibilities for risk management?
Risk management involves all parties in an organisation. Which of the following describe the Board's responsibilities for risk management?A . The Board is responsible for choosing the least risk products to promote.B . The Board is responsible for maintaining a robust system of internal controls.C . The Board is responsible...
Which of the following summarises Purchasing Power Parity Theory (PPPT)?
Which of the following summarises Purchasing Power Parity Theory (PPPT)?A . Government intervention cannot affect the inevitable rise or fall of its currency in the short-term.B . The difference between the spot and the forward exchange rates is equal to the differential between the inflation rates in the two countries.C...
