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Selected P3 CIMA Strategic level Questions Answers

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Total 339 questions

Risk Management Questions and Answers

Question 5

G plc has decided to move its production plant to overseas Country A. This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.

The Production Director has identified that there are some political risks in moving to Country A.

Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.

Options:

Question 6

A large department store has just discovered that the staff in the store coffee shop have been defrauding the company for the past three years. The six employees who work in the coffee shop have been keeping a proportion of the cash takings, concealing the theft by not recording all sales up in the till They shared the proceeds of this fraud between them The fraud was only uncovered when one of the employees left and his replacement reported the theft to management rather than becoming involved in the crime

Which of the following best describes the role of the store's internal controls in the context of this fraud?

Options:

A.

The store's board of directors should face disciplinary action for failing to prevent this fraud

B.

The coffee shop should be closed down because it is impossible to control its revenues.

C.

Even a well-designed system can be overridden by collusion between employees

D.

This fraud indicates that there are serious shortcomings in the store's system of internal controls

Question 7

Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?

Options:

A.

Leadership

B.

Reliability

C.

Remuneration

D.

Honesty

E.

Accountability

Question 8

CH makes a popular type of chocolate bar The bars are made on a production line and are scanned for size and shape as they move along the line Wrong sized and misshapen bars are rejected as being poor quality. The scanner detects 90% of poor quality bars. If CH wants to reduce the risk of poor quality bars being sold to the public it can add a further check by a person scanning the production line as well. this check would detect 80% of poor quality bars

If the further check was implemented what percentage of poor quality bars would still get through the checking process?

Options:

A.

7.2%

B.

10%

C.

30%

D.

2%

Page: 2 / 13
Total 339 questions