CTP Treasury Operations and Controls 5

Question 1

Which type of treasury fraud scheme involves an employee creating fictitious vendors to divert company payments?

Accepted Answer

Accounts payable fraud via ghost vendors

Answer

Ghost vendor fraud involves creating fictitious suppliers in payment systems to redirect company funds to a fraudster's accounts.

Question 2

What is the purpose of a 'treasury center of excellence' (COE) model?

Accepted Answer

To concentrate treasury expertise, standardize processes, and improve efficiency across the organization

Answer

A treasury COE centralizes specialized knowledge and best practices to drive consistency and efficiency across treasury functions.

Question 3

When implementing a payment factory, the PRIMARY operational benefit is:

Accepted Answer

Centralized processing of payments across multiple entities, reducing costs and improving control

Answer

A payment factory centralizes all outgoing payments from multiple subsidiaries, standardizing processes and reducing bank fees.

Question 4

A company experiences a system outage in its TMS during a critical payment window. Which element of a treasury business continuity plan addresses this scenario?

Accepted Answer

Manual backup procedures and alternate payment channels

Answer

Business continuity plans include manual backup procedures and alternate payment channels to ensure operations during system outages.

Question 5

What does 'value dating' refer to in international treasury operations?

Accepted Answer

The date funds are actually credited or debited and become available for use

Answer

Value date is the date on which funds are credited or debited and actually available, which may differ from the transaction date.

Certified Treasury Professional Exam Practice Test

Certified Treasury Professional Exam Practice Test

CTP Treasury Operations and Controls 5