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NEW QUESTION: 1
An auditor's inquiries of management disclosed that the entity recently invested in a series of energy
derivatives to hedge against the risks associated with fluctuating oil prices. Under these circumstances,
the auditor should:
A. Document the derivatives in the auditor's communication with those charged with governance.
B. Perform analytical procedures to determine if the derivatives are properly valued.
C. Confirm the marketability of the derivatives with a commodity specialist.
D. Examine the contracts for possible risk exposure and the need to recognize losses.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Generally accepted accounting principles specify that, in order to qualify for hedge
treatment, the entity must demonstrate and disclose a number of transaction features including risk
exposure. The auditor would therefore need to examine the contracts to evaluate the character of the
hedge and the degree to which losses should be recognized in the determination of income, as well as the
character of any disclosures.
Choice "A" is incorrect. Generally accepted accounting principles require this derivative to be valued at fair
value. While the auditor does need to test management's assertions about fair value, analytical procedures
are not the most likely way to do this. More likely, the auditor would obtain quoted market prices from
financial publications, the exchanges, the National Association of Securities Dealers Automated
Quotations System (NASDAQ), or pricing services. If quoted market prices were not available, estimates
based on valuation models would be used.
Choice "C" is incorrect. The auditor would not generally confirm marketability with a commodity specialist,
but rather would test the valuation of such securities by reference to quoted market prices, by using pricing
services, or based on a valuation model.
Choice "D" is incorrect. There is no requirement that investments in derivatives be communicated to those
charged with governance.
NEW QUESTION: 2
A national retail chain needs to design an IP addressing scheme to support a nationwide network. The company needs a minimum of 300 sub-networks and a maximum of 50 host addresses per subnet. Working with only one Class B address, which of the following subnet masks will support an appropriate addressing scheme? (Choose two.)
A. 255.255.252.0
B. 255.255.255.0
C. 255.255.255.224
D. 255.255.248.0
E. 255.255.255.192
F. 255.255.255.128
Answer: E,F
Explanation:
Explanation
Subnetting is used to break the network into smaller more efficient subnets to prevent excessive rates of Ethernet packet collision in a large network. Such subnets can be arranged hierarchically, with the organization's network address space (see also Autonomous System) partitioned into a tree-like structure.
Routers are used to manage traffic and constitute borders between subnets.
A routing prefix is the sequence of leading bits of an IP address that precede the portion of the address used as host identifier. In IPv4 networks, the routing prefix is often expressed as a "subnet mask", which is a bit mask covering the number of bits used in the prefix. An IPv4 subnet mask is frequently expressed in quad-dotted decimal representation, e.g., 255.255.255.0 is the subnet mask for the 192.168.1.0 network with a 24-bit routing prefix (192.168.1.0/24).
NEW QUESTION: 3
A company needs to preconfigure firewalls to be sent to remote sites with the least amount of
preconfiguration. Once deployed, each firewall must establish secure tunnels back to multiple regional
data centers to include the future regional data centers.
Which VPN configuration would adapt to changes when deployed to the future site?
A. Preconfigured GlobalProtect client
B. Preconfigured GlobalProtect satellite
C. Preconfigured PPTP Tunnels
D. Preconfigured IPsec tunnels
Answer: B
NEW QUESTION: 4
An engineer is attempting to configure a secure connection to a device. During testing, the login is not working.
Which statement describes the root cause?
A. Only SSHv1 is allowed and you are trying to configure SSHv2
B. The transport input ssh command is missing
C. Domain name has been configured
D. The old RSA key pair needs to be deleted first
Answer: B
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