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NEW QUESTION 102
H sells machinery and also associated services, such as advice and repairs. H's industry is going through considerable transformation.
Classify each of the examples of information available to H's management as strategic, operational or of having little value.
Answer:
Explanation:
NEW QUESTION 103
ABC has recently appointed a Chief Information Officer who has announced that he wants to start a major clean up starting with all desktop and laptop equipment.
Which THREE of the following measures should be adopted to help enhance security'?
- A. Automate anti-virus update processes so they cannot be avoided
- B. Make an employee of the month award for whoever spots the most bogus emails.
- C. Set up a hot line in the service desk for any security queries.
- D. instruct all staff not to click on any links in emails from anyone outside the company
- E. Make security training available to anyone who wants it.
- F. Issue a corporate policy on email use
Answer: A,D,F
NEW QUESTION 104
B uses a balanced scorecard to monitor the performance of its divisions.
Classify each of the following decisions taken by a division's management team as either commercially sound or dysfunctional.
Answer:
Explanation:
NEW QUESTION 105
P has decided to invest in a new warehouse at a cost of $2,000,000. The discount rate of the project is 18% and the present value of the tax shield is £26,000.
What is the minimum acceptable Internal Rate of Return of the project?
- A. 17.77%
- B. 16.50%
- C. 18.23%
- D. 18%
Answer: A
NEW QUESTION 106
A Firewall is an element of a company's Information Technology infrastructure.
Which THREE of the following are characteristics of a Firewall?
- A. A Firewall protects sensitive data against accidental or malicious damage.
- B. A Firewall protects against viruses.
- C. A Firewall protects the computer suite against physical attack.
- D. A Firewall determines the boundary of the "Trusted" components of the company's Information Technology infrastructure.
- E. A Firewall can screen every message coming into or out of the company network looking for key words, or attachments.
- F. A Firewall protects against unauthorised network access.
Answer: D,E,F
NEW QUESTION 107
The technology used by 3D printers is developing rapidly These machines can now use a data file to print a solid object Depending on the printer the object can be plastic, metal or ceramic The increasing capability of those printers is being matched by the falling prices of the printers themselves and of the materials that they use to create the finished product Which THREE of the following suggest that 3D printing is a potentially disruptive technology?
- A. The printers use expensive materials
- B. Many of the spare parts used to repair cars are made out of plastic or metal.
- C. Parts created by 3D printers can be distorted during the print process
- D. Design engineers typically design and draw plans for new products on their computers.
- E. Some courier companies have purchased 3D printers for their depots
- F. There is a limit to the size of objects that can be 3D printed.
Answer: D,E,F
NEW QUESTION 108
TRF is conducting a post completion audit on an investment in a pollution control machine that has reached the end of its five year useful life.
TRF could have been heavily fined if the machine had failed to keep pace with the output of emissions, measured in units. TRF's cost of capital is 10%. When the machine was purchased, there was a choice of three machines on the market:
TRF purchased the Big machine, but annual requirements only exceeded 600,000 once, in year 3, when
720,000 units of emissions were emitted.
Calculate the amount that the post completion audit shows TRF overpaid for the ownership costs associated with this machine.
Give your answer to the nearest whole $ (in $'000s).
Answer:
Explanation:
$12582
NEW QUESTION 109
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. 71%
- B. 14%
- C. 20%
- D. 63%
Answer: C
NEW QUESTION 110
Passwords are frequently used to control access to computer systems.
Which of the following characteristics should a password have in order to make it effective?
- A. Passwords should contain 20 characters or more.
- B. Passwords should never be shared.
- C. Passwords should be written down in a secret place.
- D. Passwords should be changed on a regular basis.
- E. The strength of a password is increased by using upper and lower case and including numerals.
- F. Passwords should be short words or names that users will easily remember.
Answer: B,D,E
NEW QUESTION 111
Laura is an accounts clerk. She is supposed to sign each invoice as evidence that she has conducted checks against supporting documents. Sometimes Laura signs invoices without making these checks.
Terry is a member of the internal audit team. Terry has been told to conduct compliance tests on whether Laura is checking the invoices properly.
Which of the following would give Terry a false sense of assurance that Laura's checks have been operating?
- A. Terry asked Laura a series of open-ended questions about the operation of the purchases system. She did not mention anything about detailed checks of invoices against documents.
- B. Terry selected a sample of purchase invoices and compared each to the supporting documents that Laura is supposed to review. Every one of Terry's invoices was supported by the related documents.
- C. Terry examined a sample of invoices to make sure that they had been signed by Laura. All had been signed.
- D. Terry worked at a spare desk in the accounts department and quietly watched Laura without telling her.
She checked every invoice carefully while Terry was present. - E. Terry reviewed a sample of invoices for purchases of plant and equipment and found that Laura had not signed them. Laura explained that she believed that those were authorised by someone else, although the accounts manual indicates that it was her responsibility.
Answer: B,C,D
NEW QUESTION 112
Select the most appropriate level of responsibility for managing each of the following risks.
Answer:
Explanation:
NEW QUESTION 113
A consultancy firm has many overseas clients The firm's staff are responsible for booking travel and accommodation through an independent travel agent who invoices the firm. There are strict rules governing bookings Staff at all levels must book economy class airfares unless the scheduled flight time is greater than eight hours, in which case they can book a business class seat Hotel accommodation should cost less than $300 per night One of the firm's directors is visiting the consultancy team responsible for a large overseas project The director flew business class, even though the flight took only five hours The director is booked into an executive suite at an expensive hotel at a cost of $900 per night Which TWO of the following statements concerning the director's behavior are correct?
- A. Staff may be encouraged to book more expensive flights and accommodation in the future
- B. The travel agent's invoice should be queried by the consultancy's administrative staff.
- C. Directors are not required to adhere to company policies in the same manner as more junior staff
- D. Only the staff engaged on this project will be aware of the director's behavior
- E. In future, all staff should be permitted to fly business class and use more luxunous hotels
Answer: B
NEW QUESTION 114
Which TWO of the following might create a good control environment?
- A. The Finance Director has just been given a place on the audit committee to increase the committee's financial knowledge
- B. Management did not have time to carry out all the staff appraisals this year but all staff have received a pay increase instead
- C. Management has just revisited the annual budget and made it much harder to achieve in order to try and boost profits
- D. The Board has just issued an ethical code
- E. Managers have good job descriptions that define their roles in the organisation clearly
Answer: D,E
NEW QUESTION 115
Z plc has recently undertaken a SWOT analysis. The SWOT analysis identified two main threats to Z plc:
* The threat that the currency of Z plc's main overseas competitor weakens compared to Z plc's home currency.
* The threat that there will be a military coup which will overthrow the government in the country that Z plc purchases most of its raw materials from.
Which TWO of the following categories of risk correspond most closely to the above threats?
- A. Economic risk
- B. Financial risk
- C. Business risk
- D. Political risk
Answer: A,D
NEW QUESTION 116
L's risk register currently states the likelihood of risks m terms of their estimated percentage probabilities. The risk committee cs considering classifying risks using a three point scale high, medium and low.
Which TWO of the following are true?
- A. Quantifying probabilities as percentages gives greater scope for describing risks
- B. High, medium, low will eliminate subjectivity
- C. Everyone will agree the meaning of high, medium and low
- D. High, medium and low will be easier to use
- E. Using percentages will be more scientific
Answer: A,E
NEW QUESTION 117
With regard to the rote of the audit committee which of the following statements are correct? Select ALL that apply
- A. The audit committee should review and monitor the effectiveness of the company's internal audit function
- B. The audit committee should decide annually whether it needs an external audit function
- C. The audit committee should provide arrangements for whistle blowing
- D. The audit committee should decide annually whether it needs an internal audit function
- E. The audit committee should design the system of internal controls
- F. The audit committee should engage consultants to carry out business reviews
Answer: A,C,F
NEW QUESTION 118
Which of the following best describes the relevance of value at risk (VaR) as a decision tool?
- A. VaR quantifies past volatility
- B. VaR quantifies the maximum loss that could ever be incurred
- C. VaR can only measure downside risk
- D. VaR quantifies future volatility
Answer: A
NEW QUESTION 119
D's Board has been advised by the auditors that D's control environment is weak and should be improved.
Which TWO of the following measures will help to improve the control environment?
- A. The sales managers will encourage the sales team to increase sales by 50% in the next six months.
- B. The Board will meet annually to discuss the report from the external auditors.
- C. The Board will put in place a fraud policy
- D. The Board will appoint an additional accountant in the Finance Department.
- E. The directors will have special rules for claiming expenses and will not have to follow the procedures in place for all staff
Answer: B,C
NEW QUESTION 120
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?
- A. The sales volume forecast for the new coffee
- B. The reaction of the supermarkets who currently buy coffee from HWG
- C. The choice of name for the new brand
- D. Recruiting a marketing firm to advertise the new coffee
- E. The design of packaging for the new brand
Answer: A,B
NEW QUESTION 121
B is a small retail bank that offers customers many on-the services B is keen to ensure sound security both to protect the bank's assets and also to safeguard customer privacy B's IT Security Manager has suggested that the bank should use two phase authentication for access to the on-line systems Which TWO of the following are examples of two phase authentication?
- A. Customers first input a password and then use a card or token to gain access
- B. Customers must input a valid user name and then input a password user name first input a password and then a pin number
- C. Customers first input a password and then receive an access code via email or text message that also has to be input
- D. Customer passwords must contain both letters and numbers and must be changed regularly.
Answer: C,D
NEW QUESTION 122
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