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) Only nominated FX dealers can carry out the tasks of confirmation, settlement and reconciliation.
D) Periodic reports should be forwarded to a nominated manager.

Question

Quizplus · Accepted Answer

C is incorrect because it suggests that only nominated FX dealers can carry out the tasks of confirmation, settlement, and reconciliation. In effective control environments, these tasks are typically segregated among different individuals or departments to prevent fraud and errors, ensuring that no single individual has control over all aspects of a transaction.

A Company Is Reviewing the Function of Foreign Exchange Within