SDF is a quoted company that has a large internal audit department.

Which of the following would impair the independence of SDF ' s internal audit?

JKL makes large export sales to customers in country X, whose currency fluctuates significantly against JKL ' s home currency JKL also makes large purchases from suppliers in countrrOC All of these transactions are in country X ' s currency

JKL ' s treasurer does not actively hedge currency risks because there is a natural hedge in place due to the company making both sales and purchases in the same currency

JKL ' s board has instructed the treasurer to put active hedging measures in place because the risk report would otherwise have to disclose the fact that JKL has a currency risk which is not actively hedged

Which of the following statements are correct? Select ALL that apply.

S Doc is an out-of-hours service provided by a country ' s government. The service allows members of the public to call and speak to a nurse who can advise on medical situations which are not obviously emergencies. Depending on the situation the caller can be referred to the full emergency services, or be advised to go to Accident and Emergency at the nearest hospital. Alternatively, a callout from a general practitioner (GP) can be organised; the caller can be advised of where GP services are available; advice can be given over the phone; or a decision can be taken that no further action is required at least until normal services resume on the next working day.

There has been a suggestion that the nurses who take these calls could be replaced by suitably trained operatives who have available to them a specially designed expert system.

Which of the following are advantages of using an expert system instead of nurses?

The management of U is reviewing internal controls throughout the company. It has noted the following:-

1. In the trade receivables section, journal adjustments are made by the clerks, without any reference to their supervisor. Journal adjustments may relate to sales returns, discounts allowed, or transfers between accounts.

2. 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. They do not keep any documents in relation to negotiations with other potential suppliers or other quotes obtained.

In relation to the above, which of the following statements are valid?

ZZ is a data security company that is responsible for cyber security m a large shopping mall 21 uses Network Configuration Management (NCM) to assist it in meeting the various needs of the mall ' s user community.

Which THREE of the following are advantages provided by NCM?

P is a consulting firm that provides technical advice to the oil industry. The company has consulting teams that specialise in specific areas, namely drilling, off-shore, health and safety, oil well management and ng management. Each team ' s consultants are charged out to clients at the same daily rate.

The demand for different skill sets varies constantly due to factors such as movements in oil prices. Exploration increases when the oil price rises and there is a greater focus on maintaining existing wells when the price fans.

The performance of P ' s sales team is measured in terms of revenue, based on the number of consultancy days sold Frequently the sales team agree to contracts without first checking that the relevant consulting team has consultants available. The work then has to be undertaken by subcontractors at P ' s expense. Sub-contractors cost more and their use can also lead to P ' s own consultants being under-utilised when assignments could have been scheduled more efficiently.

Which TWO of the following would correct this behavior?

R is a company running gas-fired power stations in Western Europe. The Risk Committee has just received a report that a power station built to the same design and specification in a developing country has recently collapsed. The causes of the collapse are unclear, but if something similar were to happen in Europe the consequences for R could be catastrophic.

Which of the following actions being considered by the Risk Committee are ethical?

HWG is a large company which grows and processes coffee The coffee is sold to supermarkets, branded with their names for sale as " own brand " products HWG brands and packages the coffee using the supermarkets ' own designs

HWG ' s directors are considering a strategic proposal to develop a range of coffees to be sold under a brand that HWG will develop

Which TWO of the following should the directors consider as part of their strategic analysis?

T has its computer facilities in a building adjacent to its headquarters Severe structural problems have been discovered with this building and T has been advised that the only option is demolition and rebuild This leaves T with strategic decisions to make about its IT provision and it has decided to investigate the outsourcing of its services.

Which TWO of the following factors should T consider as most important at this stage?

Under the COSO Enterprise Risk Management Framework, who is responsible for risk management?