Which of the Following Procedures Would Be Most Likely to Be

question 46

Multiple Choice

Which of the following procedures would be most likely to be considered a weakness in an entity's internal controls over payroll?

• A)The personnel department sends employees' termination notices to the payroll department.
• B)The employee who distributes payroll cheques is responsible for later distributing unclaimed payroll cheques to the employees absent at time of payroll distribution.
• C)Payroll cheques are prepared by the payroll department and signed by the treasurer.
• D)A voucher for the amount of the payroll is prepared in the general accounting department based on the payroll department's payroll summary.

Explain the International Fisher Effect and its relevance to real and nominal interest rates across countries.

Describe the mechanics and purposes of various international financial agreements and instruments such as Eurobonds and Note Issuance Facilities.

Understand the process and implications of covered interest arbitrage.

Realize the role of international corporations like Export Development Canada in facilitating international trade.

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Definitions:

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and maintaining stability of the financial system.

Money Supply

The full total of economic financial assets available at a certain moment in an economy.

Federal Open Market Committees

A branch of the Federal Reserve that oversees the nation's open market operations and sets the federal funds rate, influencing the economy.

Monetary Policy

Actions undertaken by a central bank, such as modifying interest rates, to control the money supply and achieve economic objectives.