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NEW QUESTION: 1
Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
A. The auditor tested samples of transactions to test the cash function's process flows.
B. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
C. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
D. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
Answer: C
NEW QUESTION: 2
You are the program manager for your organization. A new program is about to initiated and Marcy, your assistant, asks you about the themes that all new programs must map to. All of the following are themes that you can discuss with Marcy except for which one is not a program theme?
A. Stakeholder management
B. Program governance
C. Requirements analysis
D. Benefits management
Answer: C
NEW QUESTION: 3
According to the Basel framework, reserves resulting from the upward revaluation of assets are considered a part of:
A. All of the above
B. Tier 1 capital
C. Tier 3 capital
D. Tier 2 capital
Answer: D
Explanation:
Explanation
According to the Basel II framework, Tier 1 capital, also called core capital or basic equity, includes equity capital and disclosed reserves.
Tier 2 capital, also called supplementary capital, includes undisclosed reserves, revaluation reserves, general provisions/general loan-loss reserves, hybrid debt capital instruments and subordinated term debt.
Tier 3 capital, or short term subordinated debt, is intended only to cover market risk but only at the discretion of their national authority.
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