Treasury Operations and Controls Flashcards
7 cards from real CTP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Treasury Operations and Controls flashcards as text
Which internal control technique requires two separate individuals to authorize and execute a treasury transaction?
Answer: Dual control
Dual control requires two individuals to jointly authorize a single transaction, preventing unilateral fraud.
A treasury management system (TMS) automates which of the following to reduce manual errors in cash management?
Answer: Bank account reconciliation and cash positioning
A TMS automates bank reconciliation, cash positioning, and forecasting to reduce manual errors.
What is the primary purpose of a treasury policy statement?
Answer: To establish guidelines and limits for managing financial risks and operations
A treasury policy statement documents authorized instruments, risk limits, and procedures governing treasury activities.
Which control best prevents a treasury employee from both initiating a wire transfer and approving it?
Answer: Segregation of duties
Segregation of duties assigns initiation and approval of transactions to different employees, reducing fraud risk.
A company's treasury department identifies a $50,000 discrepancy during daily bank reconciliation. What is the FIRST step?
Answer: Investigate and identify the source of the difference
The first step is always to identify the root cause before taking corrective action.
Which payment method provides the LEAST float benefit to the paying company?
Answer: Fedwire transfers
Fedwire transfers are same-day final settlements, providing no float benefit to the payer.
What does a Treasury Operations KPI of 'STP rate' measure?
Answer: Straight-through processing rate of transactions without manual intervention
STP (Straight-Through Processing) rate measures the percentage of transactions processed automatically without manual touch.