CIMA CIMAPRA19-P03-1-ENG P3 Risk Management (Online) Online Training
CIMA CIMAPRA19-P03-1-ENG Online Training
The questions for CIMAPRA19-P03-1-ENG were last updated at Nov 20,2024.
- Exam Code: CIMAPRA19-P03-1-ENG
- Exam Name: P3 Risk Management (Online)
- Certification Provider: CIMA
- Latest update: Nov 20,2024
The internal audit department has just completed an investigation into the HR department’s procedures relating to new staff appointments The head of HR is unhappy with the draft report prepared by the lead internal auditor The report lists several cases in which appointments were made despite the fact that one or more of the entity’s formal procedures were not followed
The head of HR has complained that the internal auditor’s comments do not allow for the fact that the HR department’s staff members are often very busy and do not always have time to conduct every check.
The internal auditor’s comments also reflect a failure to complete documents None of the omissions have led to the appointment of an unsuitable member of staff
Which TWO of the following statements reflect an appropriate response by the board of directors to this report?
- A . Ignoring a compliance error altogether may undermine the control environment
- B . The procedures should be removed if the HR department staff believe that they are unnecessary
- C . The board should be seen to support the internal audit
- D . The errors are immaterial because they did not lead to an inappropriate appointment
- E . The members of staff responsible for these omissions should be subjected to disciplinary action
Which of the following are the Committee of Sponsoring Organisations (COSO) key principles of enterprise risk management? Select ALL that apply.
- A . Consideration of the main risk only which is financial risk
- B . The creation of a risk aware culture
- C . Risk management is the responsibility of the risk committee
- D . Consideration of risk management in the context of business strategy
- E . A comprehensive and holistic approach to risk management
Kate is a management accountant. Her immediate superior plans to apply for a promotion and his strongest competitor is the sales manager. Kate’s superior has ordered her to set unattainable sales targets in a sales budget in order to reduce the sales manager’s promotion prospects. He told her not to tell anybody.
Kate asked the finance director for advice. He told her that he wanted her immediate superior to get the promotion and so she should set the unattainable budget as instructed.
Kate set the budget as instructed.
Which THREE fundamental ethical principles has Kate breached?
- A . Integrity
- B . Objectivity
- C . Professional competence and due care
- D . Confidentiality
- E . Professional behaviour
DFG is the largest bridge-building company in its home country, H. DFG works exclusively for the government of country H and the government awards DFG 80% of the contracts to build new bridges.
DFG’s directors are considering using the big data approach to identify opportunities to increase sales revenues and profit.
Which of the following statements are true?
- A . Big data has the potential to identify ways in which DFG can reduce construction costs.
- B . DFG should supplement its existing databases in order to enhance the benefit from big data.
- C . The big data approach may help DFG to price contract bids more accurately.
- D . Big data has the potential to identify ways in which DFG can increase sales.
- E . It would be unethical for DFG to use big data in order to compete even more effectively with its rivals.
The senior manager in the accounts department is going on annual leave for three weeks and Jo, a supervisor is being put in charge of the department for that time.
Which TWO of the following statements are correct?
- A . Authorisation of exceptional overtime due to the year end which takes place while the senior manager is on leave should be postponed until the senior manager returns
- B . The annual staff appraisals should be postponed until the senior manager returns
- C . Authorisation of expenses should wait until the senior manager returns.
- D . Jo should not have all of the same authority as the senior manager
- E . Job interviews for an office junior should be cancelled until the senior manager returns.
C is a large international supermarket chain. It has many thousands of suppliers and many thousands of potential suppliers competing for shelf space m its supermarkets.
Which of the following provisions would be appropriate for C to include m its ethical code in relation to its suppliers? Select ALL that apply
- A . C shall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets
- B . C shall endeavour to adhere to the terms of its contracts with its suppliers at all times
- C . C shall continuously remind suppliers that it always has several alternative suppliers to choose from.
- D . C shall not use its buying power unscrupulously.
- E . C shall keep confidential all information received from suppliers and potential suppliers
- F . C shall endeavour to take as high a percentage of each supplier’s output as possible
You have just been employed as a management accountant in a small business with an annual turnover of $0.5 million.
You have a wide range of duties because the business is small.
Which of the following is an ethical risk?
- A . Being asked to buy very small gifts for key clients.
- B . Being asked to work weekends, playing golf with clients.
- C . Being asked to work weekends, taking clients to night clubs making sure they have as much alcoholic drink as they want so that they will sign contracts.
- D . Being asked to work weekends working out tenders for new contracts.
The Committee of Sponsoring Organisations (COSO) outlined six key principles of Enterprise Risk Management (ERM).
Which of the following are COSO key principles?
- A . The creation of a risk aware culture.
- B . A comprehensive and holistic approach to risk management.
- C . Risk management is the responsibility of the risk committee.
- D . Consideration of risk management in the context of business strategy.
- E . Consideration of the main risk only which is financial risk.
Which of the following statements are correct?
- A . It is always possible to remove all risks when undertaking large projects.
- B . If a project has high risks it should always be accepted as the rewards will always be high.
- C . If a project has low risks it will usually have relatively low returns.
- D . Risk can always be transferred to someone else.
- E . Risk should be carefully considered when evaluating possible future projects.
GHJ makes large export sales to customers in Country A, whose currency fluctuates significantly against GHJ’s home currency. GHJ also makes large purchases from suppliers in Country A. All of these transactions are in Country A’s currency.
GHJ’s Treasurer does not actively hedge currency risks because there is a natural hedge in place due to the company making both sales and purchases in the same currency.
GHJ’s Board has instructed the Treasurer to put active hedging measures in place because the Risk Report would otherwise have to disclose the fact that GHJ has a currency risk which is not actively hedged.
Which of the following statements are correct?
- A . The Board may be concerned it will be criticised if it does not hedge.
- B . Risk reports can change behaviour.
- C . The Board does not want to be blamed for ignoring a risk.
- D . Risk reporting is a bad thing.
- E . Risk reporting drives the whole risk management process.
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