TRF is conducting a post completion audit on an investment in a pollution control machine that has reached the end of its five year useful life.
TRF could have been heavily fined if the machine had failed to keep pace with the output of emissions, measured in units. TRF's cost of capital is 10%. When the machine was purchased, there was a choice of three machines on the market:
TRF purchased the Big machine, but annual requirements only exceeded 600,000 once, in year 3, when 720,000 units of emissions were emitted.
Calculate the amount that the post completion audit shows TRF overpaid for the ownership costs associated with this machine.
Give your answer to the nearest whole $ (in $'000s).

Which of the following is an ethical dilemma?

• A. A company is deciding whether to issue debt or equity.
• B. A company must decide whether to settle a claim from an employee who appears to have fabricated a workplace injury. The company want to avoid the cost of defending the claim.
• C. A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.
• D. A company is considering giving poorly-paid staff a generous pay rise.

WTW is a global company which produces high-tech equipment such as smart televisions and mobile phones The CFO has just resigned, having been offered a post at a competitor The CFO was well regarded and WTWs share price has fallen in response to the announcement At a board meeting the production director commented that the share price fall is the fault of the nomination committee Which THREE of the following statements are correct?

• A. If the nomination committee had been working effectively the CFO would not have resigned
• B. The nomination committee should prepare a description of the role and capabilities required for the CFO's replacement
• C. The nomination committee should have considered succession planning for directors before the CFO resigned
• D. Most of the members of the nomination committee should be executive directors as they are responsible for ensuring the share price recovers quickly.
• E. When planning the CFO's replacement the nominations committee should consider the diversity of the board

CW is a large company in the food production industry. It has grown over the years by the acquisition of several smaller rivals CW has ten branches located in its home country and has just opened a foreign branch for the first time It has recently made some changes to the structure and implementation of its control system.
Which TWO of the following changes would be most likely to improve the overall control system?

• A. CW has just opened a bank account in the currency in which the newly opened branch is now operating
• B. Excess funds are now invested, by the finance director, in short-term securities The finance director initiates buy and sell transactions and she also receives and retains all correspondence relating to the investments
• C. A policy has been initiated to complete a physical inventory of all non-current assets at least annually This is then reconciled with the non-current asset register
• D. Establishing an internal audit department
• E. Purchase invoices are now approved for payment at branches and a list of approved invoices are sent to head office for payment The invoices, supporting documentation and suppliers' statements are retained at the branches

With regard to the rote of the audit committee which of the following statements are correct? Select ALL that apply

• A. The audit committee should decide annually whether it needs an internal audit function
• B. The audit committee should provide arrangements for whistle blowing
• C. The audit committee should engage consultants to carry out business reviews
• D. The audit committee should review and monitor the effectiveness of the company's internal audit function
• E. The audit committee should decide annually whether it needs an external audit function
• F. The audit committee should design the system of internal controls