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NEW QUESTION: 1
Which of the following is a valid statement about the use of visual observations during an audit engagement?
- Visual observations can be used to detect ineffective controls, idle resources, and safety hazards. - Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement. - Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
- Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization's senior management.
A. 1 and 2 only.
B. 2 and 3 only.
C. 1 and 4 only.
D. 3 and 4 only.
Answer: A
NEW QUESTION: 2
A retail company has sensors placed in its physical retail stores. The sensors send messages over HTTP when
customers interact with in-store product displays. A Solutions Architect needs to implement a system for
processing those sensor messages; the results must be available for the Data Analysis team.
Which architecture should be used to meet these requirements?
A. Implement an Amazon API Gateway to server as the HTTP endpoint. Have the API Gateway trigger an
AWS Lambda function to process the messages, and save the results to an Amazon DynamoDB table.
B. Use Amazon Route 53 to direct incoming sensor messages to a Lambda function to process the message
and save the results to a Amazon DynamoDB table.
C. Use AWS Direct Connect to connect sensors to DynamoDB so that data can be written directly to a
DynamoDB table where it can be accessed by the Data Analysis team.
D. Create an Amazon EC2 instance to server as the HTTP endpoint and to process the messages. Save the
results to Amazon S3 for the Data Analysis team to download.
Answer: C
NEW QUESTION: 3
Somerset Investment Limited is a Singapore-based money management firm that is conducting an appraisal of its investment performance. Cameron Li, CFA, has been charged with conducting the appraisal, and is to report back to upper management with his findings.
Li is convinced that trade executions play a substantial role in overall portfolio performance, particularly for funds that have a relatively high level of turnover during the year. As a result, he is seeking methods that will allow him to evaluate the quality of trade executions.
He knows that the firm's traders use both market and limit orders, and he is wondering if a framework can be developed to ensure that the best order type is used under the specific circumstances for each trade.
When he consults with the firm's head trader, Rick Gleeson, Gleeson tells him that market orders have price uncertainty but no execution uncertainty, while limit orders eliminate price uncertainty but have execution uncertainty. According to Gleeson, rebalancing and liquidity-motivated trades should use limit orders while value-motivated and information-motivated trades should use market orders.
Li knows that bid-ask spreads are a major component of trading costs, and asks Gleeson for some recent trade data that he can use for analysis and presentation to management. He receives the following data relating to a series of buy trades for Sumatra Natural Resources (SNR), with all currency values in Singapore dollars:
Trades of Sumatra Natural Resources
Gleeson also tells Li that the portfolio manager had originally made the decision to purchase 5,000 SNR at
10:00 a.m. when the price was $22.36. The closing price for the day was Leeson's last trade at $22.65, at which point the order for the remaining 2,000 shares was cancelled.
Which of the following correctly summarizes Gleeson's comments concerning the differences between market and limit orders?
A. He is incorrect concerning the nature of uncertainty; he is correct concerning when the order types should be used.
B. He is correct concerning the nature of uncertainty; he is correct concerning when the order types should be used.
C. He is correct concerning the nature of uncertainty; he is incorrect concerning when the order types should be used.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Gleeson is correct concerning the nature of uncertainty. Market orders have price uncertainty but no execution uncertainty, while limit orders eliminate price uncertainty but have execution uncertainty.
However, he is incorrect concerning when rhese order types should be used. In most cases, information- motivated and liquidity-motivated trades should use market orders to ensure that execution takes place, while value-motivated and rebalancing trades should use limit orders because price is typically more important than the speed of execution. (Study Session 16, LOS 45.a)
NEW QUESTION: 4
Which is true when an administrator properly updates a single file within an application?
A. The administrator must redeploy the full application file.
B. The administrator can manually update the file on the file system.
C. The administrator can use a partial application update.
D. The administrator must uninstall the application, and then, reinstall with the updated application file.
Answer: B
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