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.

Question

Quizplus · Accepted Answer

Option D is not a control that should be in place for the FX function. It is a report that is generated to monitor outstanding FX transactions and does not serve as a control measure. A, B, and C are all control measures that a company should have in place for the FX function, such as specifying monetary limits, requiring authorizations, and segregating the tasks of different teams involved in the FX process.

A Company Is Reviewing the Function of Foreign Exchange Within