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NLC, a retail chain, is considering moving its information systems which support its point of sale infrastructure into the cloud.

Which TWO factors should it consider in choosing its supplier?

A.

Cheapest option offered

B.

Certified security

C.

Proximity of facilities to head office

D.

Robust service level agreement

R plc is considering an investment of $1,100,000 in a new machine which is expected to have substantial cash inflows over the next five years.

The annual cash flows from this investment and their probability are shown below:

Annual cash flow ($) Probability

 200,000                         0.4

 280,000                         0.5

 350,000                         0.1

At the end of its five-year life, the asset is expected to sell for $100,000. The cost of capital is 5%.

What is the Expected Net Present Value?

Give your answer to the nearest whole $.

An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.

Which of the following best explains the relevance of quantifying the risk in that way?

A.

There is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

B.

The probability is so low as to be ignored.

C.

The directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

D.

The calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Which THREE of the following are key elements of cyber security risk governance?

A.

Ensure all employees have their passwords changed every 30 days.

B.

Ensure the organisation has defined standards of conduct for IT use.

C.

Ensure all employees are trained in IT use

D.

Ensure all employees have at least two cyber security objectives in their development plans.

E.

Ensure the organisation has defined structures for cyber security management

F.

Ensure all employees have anti-virus software on their equipment

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

A.

The shares have more unsystematic risk than the stock market average.

B.

The shares have more systematic risk than the stock market average.

C.

The shares have more total risk than the stock market average.

D.

The shares have less unsystematic risk than the stock market average.

A junior sales clerk at BCD, a wholesale jewellers, received an email which appeared to be from a well known parcel delivery company informing her that a delivery had been attempted outside office hours and had consequently failed She was asked to click on a link and complete some seemingly innocent but logical questions to effect the delivery on the next day She thought no more about it but was very surprised the next month to be awarded salesperson of the month as her sales had doubled

Unfortunately, on investigation it was found that this was as a result of several fraudulent orders for high-value items that had seemingly been placed by an existing customer but delivered to a new address, which turned out to be a temporary box number The existing customer's credit card had been fraudulently charged for these orders

Which of the following types of cyber-attack had the sales clerk been a victim of?

A.

Botnets

B.

Malvertising

C.

Trojan

D.

Ransomware

TLY sell building materials such as bricks sacks of concrete and paving slabs to builders Materials are kept in a large yard Customer orders are fulfilled by a team of 30 employees who use forklift trucks to move sold items to the loading bay, from where they are loaded onto lornes for dispatch to the customer The sales office prepares dispatch notes, which are used by the yard employees to identify the items that have been ordered

Which TWO of the following controls would be cost-effective ways to prevent the theft of inventory by TLY's staff?

A.

Have a security guard check outgoing lorry loads of materials against a dispatch note

B.

Conduct random searches of yard staff when they are leaving at the ends of their shifts

C.

Install closed circuit television cameras covering the whole yard and with screens constantly monitored by security staff

D.

Forbid staff from parking their cars in the yard

E.

Have a separate buying department, whose staff do not have access to the yard to place orders for replacement inventory.

Internal audit should be both efficient and effective.

Which THREE of the following measure the efficiency of internal audit"?

A.

The number of internal audit reports produced.

B.

The cost per audit day.

C.

The number of breaches in internal controls prevented.

D.

The cost per audit report

E.

The number of improvements in internal controls introduced.

THG is a quoted company that manufactures expensive clothes that are sold to upmarket department stores THG's Board has commissioned a stress test to identify the impact of strategic risks The consultant who is conducting the test is currently investigating the impact that a 1 % increase in interest rates would have on THG.

Which TWO of the following are valid reasons for including an increase in interest rates in the stress test?

A.

Stress testing was first developed for bank supervision.

B.

THG might change its prices if interest rates rise

C.

Many of the retailers who resell THG's clothes are highly geared

D.

THG is highly geared.

E.

Interest rates affect consumers' disposable income

Achieving the budget is often used as a good performance measure. However, there are problems with budgets which may mean they are not always good measures of performance.

Which TWO of the following statements about budgets suggest that they should not always be used to measure performance?

A.

Budgets may deliberately be set too low by managers so they are easily achieved and make the manager look good.

B.

Budgets are a commitment. They therefore act as a constraint on doing anything different.

C.

Budgets can be used to motivate staff if they are set correctly.

D.

Budgets can give people goals to achieve and if everyone strives to achieve these goals the whole organisation will benefit.