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Which of the following represents the greatest risk associated with introducing a system of post-completion audit for investment projects?
Which of the following represents the greatest risk associated with introducing a system of post-completion audit for investment projects?A . Decision makers may be deterred from taking responsible risks.B . The entity will realise that its approach to project appraisal is flawed.C . The audit itself will waste time.D ....
Which of the following is a valid explanation for entering into these option positions?
A UK manufacturing company has simultaneously: • purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65 • sold a call option that grants the option holder the right to buy USD 1million at a price of GBP1.00 = USD1.61 (this option has the...
Which of the following best explains the relevance of quantifying the risk in that way?
An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%. Which of the...
Which of the following factors strengthens the case that T has been incompetent?
T is an accountant who has been accused of professional incompetence T agreed to advise a client on currency management and the client lost a great deal of money when a large foreign currency trade receivable declined in value without having been hedged. Which of the following factors strengthens the...
Which THREE fundamental ethical principles has Kate breached?
Kate is a management accountant. Her immediate superior plans to apply for a promotion and his strongest competitor is the sales manager. Kate's superior has ordered her to set unattainable sales targets in a sales budget in order to reduce the sales manager's promotion prospects. He told her not to...
What is the sensitivity of the project to changes in material costs?
CORRECT TEXT A project has an NPV of £1,200,000. The present value of material costs which are included in the NPV calculation are £8,000,000. What is the sensitivity of the project to changes in material costs? Give your answer to the nearest whole percentage.View AnswerAnswer: 15%
Which of the following are threats to the control environment?
Which of the following are threats to the control environment?A . Directors not producing receipts for their expenses.B . Internal auditors not following up on internal control problems.C . Directors ignoring unethical practices that increase sales.D . Regularly changing procedures to comply with legislation.E . Allowing staff to follow unwritten...
What is the project's sensitivity to staff costs?
A project has a net present value of $2 million. Total cash outflows of this project have a present value of $14 million, which includes staff costs of $10 million. What is the project's sensitivity to staff costs?A . 20%B . 63%C . 71%D . 14%View AnswerAnswer: A
Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?
W plc is a large international supermarket chain. It has many thousands of suppliers and many thousands of others competing for "shelf space" in its supermarkets. Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?A . W...
Which of the following might be valid explanations for the use of a money market hedge for this purpose?
The treasurer of IOK is considering entering into a money market hedge in order to hedge a payable. Which of the following might be valid explanations for the use of a money market hedge for this purpose?A . There are no forward contracts available for the purchase of the payable...
