Try and practice the latest CIMA : CIMAPRA19-P03-1 real questions & answers

JC is a car manufacturing company in country C and manufactures diesel cars It is facing a number of serious risks Which TWO of the following nsk factors are external?

• A. JC's production staff are complaining that their wages are too low compared to wages paid to other employees.
• B. Diesel cars are being criticised by experts because it is believed they cause more harmful pollution than petrol
• C. JC is facing court action arising from injuries to customers caused by an alleged brake failure in one of its cars
• D. Country F, JC's main market, is threatening to impose tariffs on car imports
• E. JC's marketing director is considering an attractive job offer from one of J's main competitors

Which of the following is an ethical dilemma?

• A. A company must decide whether to settle a claim from an employee who appears to have fabricated a workplace injury. The company want to avoid the cost of defending the claim.
• B. A company is deciding whether to issue debt or equity.
• C. A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.
• D. A company is considering giving poorly-paid staff a generous pay rise.

Company M has lost 25% of its revenue in the last three months due to bad debts. One of the receivables written off was from a long standing customer and the other three were from new customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?

• A. As soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced.
• B. A credit check should be carried out on each new customer.
• C. Credit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.
• D. An aged analysis of customer balances must be reviewed every month.
• E. Two sales staff must authorise new customers and sign a form stating that they have done so.

An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.
Which of the following best explains the relevance of quantifying the risk in that way?

• A. The probability is so low as to be ignored.
• B. There is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.
• C. The calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.
• D. The directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

HGY is a major global corporation that has decided to implement the COSO Enterprise Risk Management Framework and integrate management practices throughout the organisation Which THREE of the following would be appropriate for HGY?

• A. Authorise managers and supervisors to respond immediately to any risks that emerge
• B. Recruit a Director of Risk, who will lead risk management procedures.
• C. Train staff at all levels to identify and report risks to their superiors
• D. Identify risk as an element of HGY's overall strategy.
• E. Create a risk management team that will take responsibility for identifying and mitigating risk
• F. Make risk management an element of everyone's responsibility