Most Recent CIMAPRA19-P03-1 Exam Questions & Answers

Prepare for the CIMA P3 Risk Management (Online) exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRA19-P03-1 exam and achieve success.

The questions for CIMAPRA19-P03-1 were last updated on Jan 18, 2025.

Viewing page 1 out of 55 pages.
Viewing questions 1-5 out of 275 questions

Get All 275 Questions & Answers

Question No. 1

Why do businesses take risks?

Select theTWOcorrect answers.

ARisk taking can give the impression that senior management roles are very dynamic.

BRisk taking can assist businesses to gain an advantage on theircompetitors.

CRisk taking allows businessesto save time by not having to find out all the facts before they embark on new projects.

DRisk takingprovides businesses with opportunities to makebetterreturns.

ERisk takingallows for multiple random outcomes, some of which may be worth chasing.

Show Answer

Correct Answer: B, D

Question No. 2

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?

AIgnoring a compliance error altogether may undermine the control environment

BThe procedures should be removed if the HR department staff believe that they are unnecessary

CThe board should be seen to support the internal audit

DThe errors are immaterial because they did not lead to an inappropriate appointment

EThe members of staff responsible for these omissions should be subjected to disciplinary action

Show Answer

Correct Answer: C, E

Question No. 3

A UK based company is considering an investment of GB1,000,000 in a project in the US

AIt is anticipated that the following cash flows will arise from this project.
The cash flows will be either US$400,000 with a probability of 40% or US$700,000 with a probability of 60% for each of the next three years; remitted to the UKat the end of each year.
Currently GB1.00 is worth US$1.30.
The expected inflation rates in the two countries over the next four years are 2% in the UK and 4% in the US.
Applying the Purchasing Power Parity Theory, which of the following represents the expected net present value of the project in GP (to the nearest whole pound)?

AGB287,639

BGB391,640

CGB(111,973)

DGB554,047

Show Answer

Correct Answer: A, A

Question No. 4

Which of the following statements concerning the use of balanced scorecards to measure divisional performance is correct?

ADysfunctional behaviour is more difficult than under traditional reporting because a wide range of factors will be measured and reported.

BDysfunctional behaviour is impossible because divisional managers are evaluated on so many different decisions.

CContradictory and inconsistent targets prevent balanced scorecards being a useful tool for performance evaluation.

DThe input for balanced scorecard reports comes from many sources so it is not possible to misrepresent performance.

Show Answer

Correct Answer: A

Question No. 5

Which of the following are true of an effective risk management culture?

AStaff should be penalised for being associated with negative events.

BAll risk should be eliminated.

CResponsibility for risk management should be devolved to a risk manager.

DAll staff should be aware of risks affecting the entity.

ERisk management should be regarded as part of the overall business strategy.

FThe directors should take an active interest in risk management.

Show Answer

Correct Answer: D, E, F

Unlock All Questions for CIMA CIMAPRA19-P03-1 Exam

Full Exam Access, Actual Exam Questions, Validated Answers, Anytime Anywhere, No Download Limits, No Practice Limits

Get All 275 Questions & Answers