CTP · Question #305
(Topic 4) A company's Chief Financial Officer assigns a team reporting to the Treasurer to restructure the company's complex debt instruments and equipment leasing arrangements. The team executes…
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Question
- (Topic 4)
A company’s Chief Financial Officer assigns a team reporting to the Treasurer to restructure the company’s complex debt instruments and equipment leasing arrangements. The team executes the required settlement transactions using wire payments to facilitate the new debt structure, and in the process violates the lending requirements of the company’s bank. What should the Treasurer have done to prevent the violation?
Options
- ASet up an exception management process.
- BEstablished covenant monitoring and compliance controls.
- CRestricted access to the company's payment processing system.
- DSegregated the team's duties for the debt structuring and transaction activities.
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