Treasury Supervision and Control is a process that ensures that the treasury department of a company is managed effectively and efficiently. It involves setting up systems and procedures to monitor and control treasury activities, such as cash management, debt management, and foreign exchange risk management.
MCQs on Treasury Supervision and Control:
- Which of the following is not a function of Treasury Supervision and Control?
- To set up systems and procedures to monitor and control treasury activities
- To ensure that treasury activities are in line with the company’s overall risk appetite
- To report on treasury activities to the board of directors
- To ensure that treasury activities are compliant with applicable laws and regulations
- Answer: To manage treasury activities
- Treasury Supervision and Control is important because it helps to:
- Ensure that the treasury department is managed effectively and efficiently
- Protect the company from financial losses
- Comply with applicable laws and regulations
- All of the above
- Answer: All of the above
- The treasury department is responsible for managing the company’s cash, debt, and foreign exchange risk. It is important to have a system in place to monitor and control these activities to ensure that the company is protected from financial losses.
- True
- False
- Answer: True
- The board of directors is responsible for overseeing the treasury department and ensuring that it is managed effectively and efficiently. They should receive regular reports on treasury activities to make sure that they are in line with the company’s overall risk appetite.
- True
- False
- Answer: True
- Treasury Supervision and Control is a continuous process that should be reviewed and updated regularly to ensure that it is still effective. The treasury department should be prepared to respond to changes in the market environment and the company’s risk appetite.
- True
- False
- Answer: True
Conclusion
Treasury Supervision and Control is an important process that helps to ensure that the treasury department of a company is managed effectively and efficiently. It is a continuous process that should be reviewed and updated regularly to ensure that it is still effective.
Here are some additional points to keep in mind about Treasury Supervision and Control:
- Treasury Supervision and Control is typically carried out by the treasury department itself, with support from other departments such as internal audit and risk management.
- Treasury Supervision and Control should be aligned with the company’s overall risk appetite and should be tailored to the specific needs of the treasury department.
- Treasury Supervision and Control should be documented in a treasury manual or other written policy.
- Treasury Supervision and Control should be regularly reviewed and updated to ensure that it is still effective.