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Under the COSO Enterprise Risk Management Framework, who is responsible for risk management?
Under the COSO Enterprise Risk Management Framework, who is responsible for risk management?A . Every member of the entity.B . The board of directors only.C . Managers and directors only.D . The shareholders.View AnswerAnswer: A
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 statements are true?
DFG's call centre budgets four minutes for its operators to deal with a customer's enquiry and conclude the call. Team leaders are evaluated on the basis of the average call length. Simone is a team leader. Her team's average call length is five minutes and 30 seconds. Simone accepts full...
Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes
DRAG DROP Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes. View AnswerAnswer:
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...
Select the most appropriate level of responsibility for managing each of the following risks
DRAG DROP Select the most appropriate level of responsibility for managing each of the following risks. View AnswerAnswer:
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...
Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months' time?
The long-term prospects for interest rates in the UK and the USA are 2% and 6% per annum respectively. The GBP/USD spot rate is currently GBP/USD1.71. Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months' time?A . GBP/USD = 1.74B . GBP/USD...
Which of the following will usually increase shareholders' wealth?
The managers of a company are agents for the shareholders tasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?A . Investing in projects with the shortest payback period.B . Investing in projects with positive net present value.C . Investing in projects with the greatest level...
What is the hedged borrowing rate, taking the borrowing and swap into account?
CORRECT TEXT A US company enters into a five year borrowing with bank A at a floating rate of USD Libor plus 2%. It simultaneously enters into an interest rate swap with bank B at 3.5% fixed against USD Libor plus 1%. What is the hedged borrowing rate, taking the...
