OPERATING EXPOSURE Definition

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OPERATING EXPOSURE, in foreign exchange, is currency fluctuations combined with price level changes that can alter the amounts and riskiness of a firm's future revenues and costs. It is typified by evaluating real exchange gains or losses. It is prospective and long-term in nature.

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TRADING STOCK see TRADING SECURITIES.

CONTROL POLICIES AND PROCEDURES are the policies and procedures that help ensure management directives are carried out. Those pertinent to an audit include performance reviews, information processing, physical controls and segregation of duties.

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