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NEW QUESTION: 1
With regard to external assessments of an internal audit activity (IAA), which of the following is the chief audit executive required to discuss with the board?
A. External reviewer conflicts of interest, and the need for an external assessment more frequently than once every five years.
B. The simplest way for the external reviewer to join the IAA's organization, and the timeline of the external assessment.
C. External reviewer conflicts of interest, and the timeline of the external assessment.
D. The need for an external assessment more frequently than once every five years, and the simplest method for the external reviewer to join the IAA's organization.
Answer: A

NEW QUESTION: 2
When you use the Global Properties' default settings on R76, which type of traffic will be dropped if NO explicit rule allows the traffic?
A. Outgoing traffic originating from the Security Gateway
B. RIP traffic
C. Firewall logging and ICA key-exchange information
D. SmartUpdate connections
Answer: B

NEW QUESTION: 3
A company is considering the issue of a convertible bond compared to a straight bond issue (non- convertible bond).
Director A is concerned that issuing a convertible bond will upset the shareholders for the following reasons:
* it will dilute their control
* the interest payments will be higher therefore reducing liquidity
* it will increase the gearing ratio therefore increasing financial risk Director B disagrees, and is preparing a board paper to promote the issue of the convertible bond rather than a non-convertible.
Advise the Director B which THREE of the following statements should be included in his board paper to promote the issue of the convertible bond?
A. The convertible bond may not dilute control as the bond holder has an option to choose conversion.
B. Over the life of the bond, a convertible will be more expensive than a non-convertible.
C. The coupon rate on the convertible bond will be lower than that on a non-convertible bond.
D. When converted into shares, the company will receive a cash inflow which can be used for future investments.
E. Issuing a convertible bond will have a more favourable impact on the gearing ratio than a non- convertible bond.
Answer: A,C,E

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