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NEW QUESTION: 1
When a client engages in transactions involving derivatives, the auditor should:
A. Notify those charged with governance about the risks involved in derivative transactions.
B. Confirm with the client's broker whether the derivatives are for trading purposes.
C. Add an explanatory paragraph to the auditor's report describing the risks associated with each
derivative.
D. Develop an understanding of the economic substance of each derivative.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. In auditing investments in securities and derivatives, the auditor must assess the
reasonableness and appropriateness of assumptions, market variables, and valuation models. In order to
do this, the auditor must consider whether the substance of transactions or events differs materially from
their form. Remember that generally accepted accounting principles require transactions and events to be
reported in accordance with their economic substance, even if this differs from their form.
Choice "B" is incorrect. While the auditor might confirm settled and unsettled transactions with the broker,
whether a security is held for trading purposes is based on management intent and would not be
confirmed with the broker.
Choice "C" is incorrect. There is no requirement that the auditor notify those charged with governance
about the risks involved in derivative transactions.
Choice "D" is incorrect. There is no requirement that the auditor add an explanatory paragraph to the
auditor's report describing the risks associated with each derivative.

NEW QUESTION: 2
Refer to the exhibit.

A network administrator attempts to ping Host2 from Host1 and receives the results that are shown. What is the problem?
A. The default gateway on Host1 is incorrect.
B. TCP/IP is not functioning on Host1
C. The link between Host1 and Switch1 is down.
D. Interface Fa0/0 on Router1 is shutdown.
E. The link between Router1 and Router2 is down.
F. The link between Switch1 and Router1 is down.
Answer: E
Explanation:
Host1 tries to communicate with Host2. The message destination host unreachable from Router1 indicates that the problem occurs when the data is forwarded from Host1 to Host2. According to
the topology, we can infer that the link between Router1 and Router2 is down.

NEW QUESTION: 3
Which of the following requires a custom CloudWatch metric to monitor?
A. Disk usage activity of an EC2 instance
B. CPU Utilization of an EC2 instance
C. Memory Utilization of an EC2 instance
D. Data transfer of an EC2 instance
Answer: C
Explanation:
Explanation/Reference:
Explanation:
CloudWatch relies on the information provided by this hypervisor, which can only see the most hardware- sided part of the instance's status, including CPU usage (but not load), total memory size (but not memory usage), number of I/O operations on the hard disks (but not it's partition layout and space usage) and network traffic (but not the processes generating it).

NEW QUESTION: 4
Which statement correctly describes a benefit of using a Virtual Data Mover (VDM)?
A. It provides security for users in multi-protocol environments
B. It can be configured as a standby for failover.
C. It supports the separation of CIFS servers and their shares
D. It enables the replication of NFS exports
Answer: C

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