Please use this google drive link to download the answer file.       

answer 1.https://drive.google.com/file/d/1_dn9_ouui-kM6Pd0HPn9eQWafOKow66K/view?usp=sharing

answer 4.https://drive.google.com/file/d/176DFhsBdJRmAPv19CUCSmRC01YZrMFO9/view?usp=sharing

Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process. 

https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link 

2.

The provision for loan and lease losses are the realized losses from the previous accounting period.

Answer is B - are the realized losses from the previous accounting period.

The provisions for loan and lease losses are the estimates of losses that arise due to non-payment of loan and lease amount. This provision is kept in a separate account for a temporary period of time and they are either reinstated or write off based on the expectation made for the loan amount to be received or not. It is the provision made for the estimated loss of revenue which will arise due to non-payment of loan and lease amount or loans which have turned bad.

3.

Following are the areas in which an Audit committee can facilitate proper oversight and direction of internal auditors:

Technology application - New tools & techniques like data mining are enhancing audit’s effectiveness & efficiency and the committee can give direction & check how internal team is applying this.

Strengthen relationship between internal audit and committee – Having regular interactions between the two will ensure proper accountability and knowledge sharing

Risk plan - Flexible internal risk plan which is reactive to change.

Set strategic vision and plan - Auditors should plan effectively & efficiently to their audit plans and the same should be shared with the committee on timely basis for their guidance

Ensure compliance with The International Standards for the Professional Practice of Internal Auditing - Audit committee should ensure compliance of internal auditors with the global standards of the Institute of Internal Auditors (IIA)

Assessing talent in internal audit team for the organization – Internal Audit team is a source of functional expertise for the organization because of their greater understanding of the function’s processes and hence could be a good resource to deploy in the functions

Define value addition of internal audit – Audit committee can define value addition of internal audit to the internal and external stakeholders and ensure proper support from the management in terms of resources like manpower, tools, their time and guidance etc.

Capability building - Capability building of internal audit team through regular training programs and go-and-see visits to other organizations, seminars and other forums.

4.In scenarion 1. Profit earned with hedging (pound 26,905) is more and we had to deduct the loss of option premium which was paid ,calculated on option strike price.

In scenario 2,

Profit earned without hedging (pound 46,000) is more.

The Strike Price of pound 0.922 is at option premium of pound 0.025 .

Note : We have made our calculation , after first converting exchange rate in $ terms because we want our calculation in pounds so, in order to convert revenue from $ to pounds we first bring exchange rate into dollar form , only then we do profit calculation in pound.

In Exchange rate two way quote , where 2 currencies are given , while converting excahange rate of bid and ask from pound to dollar we have to reverse the calculations .

Also , note that Bank and Ask rate are quoyed from bank's point of view.