A Company Is Reviewing the Function of Foreign Exchange Within

question 12

Multiple Choice

A company is reviewing the function of foreign exchange within its treasury division.Which one of the following is NOT one of the 'controls' the company should have in place for the FX function?

• A) There should be specified monetary limits for single transactions.
• B) Authorisations should be required for FX products.
• C) The tasks of dealing, back office, technology support, administration and audit should be segregated.
• D) The net value of outstanding FX buys and sell transactions yet to be settled is called an exception report.

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Definitions:

Australian Residents

Individuals or entities residing in Australia for tax purposes, subject to Australian tax laws on their worldwide income.

Reverse Acquisitions

A transaction where a smaller company acquires control over a larger company, often resulting in the smaller entity's management taking control of the combined entity.

Reverse Acquisition

An acquisition where the acquiring company is considered the subsidiary and the target company is considered the parent in financial reporting.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if they were a single economic entity.