QUESTION: 33

DRAG DROP (Drag and Drop is not supported)

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?

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Answer(s): A

Explanation:

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QUESTION: 34

The interest rate on EUR deposits is 7%. The interest rate on GBP deposits is 5%. The spot rate is EUR/GBP0.8500.
What is the one year forward rate predicted to be assuming interest rate parity holds true?

0.8662
0.8341
0.7500
0.9633

Answer(s): B

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QUESTION: 35

FGT is evaluating the political risks associated with its operations around the world.
Which of the following would indicate that a particular subsidiary has a high level of political risk?

Forthcoming elections in the subsidiary's host country.
The subsidiary's host country requires the active participation of local partners before the subsidiary can operate.
Company law in the subsidiary host country is lax.
The subsidiary is located a considerable distance from FGT's home country.
The subsidiary employs a large number of nationals from the host country.

Answer(s): A,B,C

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QUESTION: 36

MNB is a multinational IT company with headquarters in Asia and with operations in all continents. MNB is attempting to expand its operations in Europe. This is seen as a major challenge as the European market is very well developed and highly competitive. MNB develops and manufactures its own products. Parts and assemblies are sourced across Asia, America and Europe. These are sometimes purchased locally as a condition of a contract, but MNB aims to include as much of its own equipment as possible. Transfer prices between MNB's subsidiaries can be set in YEN, USD, EURO, GBP. Transfer prices are revised every month in line with production times as most goods are made on short order with sales cycles running at 3-4 months.
What types of risk are being presented here?

Political risk
Currency risk
Economic risk
Environmental risk
Fraud risk
Legal risk

Answer(s): A,B,C

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Free CIMAPRA19-P03-1 Exam Braindumps

QUESTION: 33

Explanation:

QUESTION: 34

QUESTION: 35

QUESTION: 36