Question 1

Investment companies may integrate the various components of ESG in their analysis of a target company by:

Options :

A : determining the longevity of corporate leadership

B : lowering the company’s operating cost estimate

C : lowering the company’s revenue estimate

Answer: C

Question 2

Performance materiality:

Options :

A : is usually higher than overall materiality

B : is set lower when financial controls are strong.

C : can indicate the auditor-s level of trust in a company’s financial systems.

Answer: A

Question 3

In which country is the proposal of shareholder resolutions most common?

Options :

A : UK

B : US

C : Australia

Answer: B

Question 4

A company’s emission reduction commitments are best evaluated using:

Options :

A : Scope 3 emissions.

B : science-based targets.

C : financial modelling of material environmental factors.

Answer: B

Question 5

Commodity price volatility resulting in profits vulnerability for companies is most likely an example of financial risk transmission by

Options :

A : micro-channel

B : macro-channel

C : company actions

Answer: B