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NEW QUESTION 50
What is the purpose of the Sarbanes-Oxley Regulation?
Explanation:
Explanation
Sarbanes Oxley Regulations encourages transparency in financial reporting. The regulations came in response to the Enron scandal in 2001 when Enron bosses were falsifying financial records to make the company look better than it was, then the company went bust. The point of Sarbanes Oxley is to ensure that this doesn't happen again- that business leaders report correct financial statements to shareholders. The study guide talks about this on p.42 but I'd recommend also watching this video as it gives a good background to the regulation:
NEW QUESTION 51
In an emergency situation, put the following phases into chronological order as to when they would be activated 1) disaster recover plan 2) incident response 3) business continuity plan
Explanation:
Explanation
The correct order is 2, 1, 3 - this is from p.108 of the study guide: 'The Components of a Business Continuity and Disaster Recovery Plan'.
NEW QUESTION 52
The USA Foreign Corrupt Practices Act (FCPA) is further reaching than the UK's Bribery Act 2010. Is this statement true?
Explanation:
Explanation
The correct answer is 3. Firstly you can half the number of responses by looking at the yes / no. The UK Bribery Act is further reaching than the FCPA. Therefore the statement is False. You can therefore discount the options that start with yes. Of the two remaining statements only one of them is true and that is number 3- the Bribery Act extends to third parties and the FCPA does not. Option 4 is incorrect as the Bribery Act DOES account for facilitation payments. Its to FCPA that doesn't. This is explained on p. 36 of the study guide
NEW QUESTION 53
Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?
Explanation:
Explanation
2 'increase security of supply risks as there is less buffer stock held on site' is the correct answer. With Lean manufacturing there is little or no buffer stock held. This means that if a supplier doesn't deliver on time, the whole manufacturing process will have to come to a stop until new supplies arrive. A risk of Lean Manufacturing is that you become too reliant on suppliers, and if there is a scarcity of resources or an issue with the supply chain, you are more exposed. See p.26-27 for more information on Security of Supply Risks.
NEW QUESTION 54
Petra Ltd is a manufacturer of upmarket baked goods and they have a range which is gluten free and therefore suitable for customers who have an intolerance of wheat. For this reason Petra Ltd is very strict about the ingredients that it sources. It's main supplier has provided written agreement that they will test all ingredients in their processing factory to ensure that they are suitable for the gluten free diet before delivery is made, and once delivery is made the materials will be deemed accepted by the buyer. Is Petra right to accept this arrangement?
Explanation:
Explanation
Petra should arrange for additional tests to be conducted. This question is based on a real example in the exam.
In this scenario there is still significant risk for Petra even if the supplier is testing the materials. The supplier could miss something, or forge the results with disastrous consequences for Petra's customers. Moreover it would severely damage Petra's reputation. Therefore the wise thing would be for Petra to conduct additional tests in-house to ensure they are happy with the products and only then accept them. This could be an audit of
10% of deliveries to ensure compliance. Acceptance Testing is discussed in the textbook on p.70
NEW QUESTION 55
......
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For example, you will learn how to remember the exam (https://www.examcollectionpass.com/CIPS/L5M2-exam-braindumps.html) focus as much as possible in unit time and draw inferences about other cases from one instance.NEW QUESTION 50
What is the purpose of the Sarbanes-Oxley Regulation?
- A. to encourage transparency in financial reporting
- B. to ensure that products that reach the market are fit for purpose
- C. to ensure high levels of ethical practice with regards to working conditions
- D. to protect the environment
Explanation:
Explanation
Sarbanes Oxley Regulations encourages transparency in financial reporting. The regulations came in response to the Enron scandal in 2001 when Enron bosses were falsifying financial records to make the company look better than it was, then the company went bust. The point of Sarbanes Oxley is to ensure that this doesn't happen again- that business leaders report correct financial statements to shareholders. The study guide talks about this on p.42 but I'd recommend also watching this video as it gives a good background to the regulation:
NEW QUESTION 51
In an emergency situation, put the following phases into chronological order as to when they would be activated 1) disaster recover plan 2) incident response 3) business continuity plan
- A. 1, 3, 2
- B. 1, 2, 3
- C. 3, 1, 2
- D. 2, 1, 3
Explanation:
Explanation
The correct order is 2, 1, 3 - this is from p.108 of the study guide: 'The Components of a Business Continuity and Disaster Recovery Plan'.
NEW QUESTION 52
The USA Foreign Corrupt Practices Act (FCPA) is further reaching than the UK's Bribery Act 2010. Is this statement true?
- A. yes- the FCPA covers 'private bribes' and the Bribery Act does not
- B. No- the Bribery Act extends to third parties and the FCPA does not
- C. No- the Bribery Act doesn't account for facilitation payments
- D. yes- the FCPA exempts facilitation payments
Explanation:
Explanation
The correct answer is 3. Firstly you can half the number of responses by looking at the yes / no. The UK Bribery Act is further reaching than the FCPA. Therefore the statement is False. You can therefore discount the options that start with yes. Of the two remaining statements only one of them is true and that is number 3- the Bribery Act extends to third parties and the FCPA does not. Option 4 is incorrect as the Bribery Act DOES account for facilitation payments. Its to FCPA that doesn't. This is explained on p. 36 of the study guide
NEW QUESTION 53
Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?
- A. decrease security of supply risks as there is less buffer stock
- B. increase security of supply risks as this is a tried and tested risk reducing process
- C. increase security of supply risks as there is less buffer stock held on site
- D. decrease security of supply risks as there will be increased efficiencies
Explanation:
Explanation
2 'increase security of supply risks as there is less buffer stock held on site' is the correct answer. With Lean manufacturing there is little or no buffer stock held. This means that if a supplier doesn't deliver on time, the whole manufacturing process will have to come to a stop until new supplies arrive. A risk of Lean Manufacturing is that you become too reliant on suppliers, and if there is a scarcity of resources or an issue with the supply chain, you are more exposed. See p.26-27 for more information on Security of Supply Risks.
NEW QUESTION 54
Petra Ltd is a manufacturer of upmarket baked goods and they have a range which is gluten free and therefore suitable for customers who have an intolerance of wheat. For this reason Petra Ltd is very strict about the ingredients that it sources. It's main supplier has provided written agreement that they will test all ingredients in their processing factory to ensure that they are suitable for the gluten free diet before delivery is made, and once delivery is made the materials will be deemed accepted by the buyer. Is Petra right to accept this arrangement?
- A. yes- this reduces the risk of unsuitable materials entering Petra's factory
- B. yes- this arrangement places the risk on the supplier rather than Petra
- C. no- Petra should arrange for additional tests to be conducted on the deliveries and only accept them once these tests have been completed
- D. no - this arrangement is unacceptable and Petra should void the contract
Explanation:
Explanation
Petra should arrange for additional tests to be conducted. This question is based on a real example in the exam.
In this scenario there is still significant risk for Petra even if the supplier is testing the materials. The supplier could miss something, or forge the results with disastrous consequences for Petra's customers. Moreover it would severely damage Petra's reputation. Therefore the wise thing would be for Petra to conduct additional tests in-house to ensure they are happy with the products and only then accept them. This could be an audit of
10% of deliveries to ensure compliance. Acceptance Testing is discussed in the textbook on p.70
NEW QUESTION 55
......