Most Recent CIMAPRO19-P03-1 Exam Questions & Answers

Prepare for the CIMA P3 Risk Management 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 CIMAPRO19-P03-1 exam and achieve success.

The questions for CIMAPRO19-P03-1 were last updated on Jan 18, 2025.

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Question No. 1

Which of the following is NOT a financial risk.

ASelling goods on credit terms.

BTaking out variable rate loans to finance short term investments.

CSourcing raw materials overseas to manufacture goods.

DGlobal warming.

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Correct Answer: D

Question No. 2

With regard to the internal audit department,whichTWO of the following statements arecorrect?

AThe internal audit department should co-opt a manager from the department it is auditing onto the teamin order to ensure it can follow the processes applied in that department.

BThe internal audit department should report directly to the board of directors, especially if it suspects a director has circumvented any internal controls.

CThe internal audit department should make recommendations on actions to be taken following any engagement within a department.

DThe internal audit department should make recommendations on how to improve the control systems withina department following any engagement within that department.

EThe internal audit department should follow a planned work schedule which is reviewed at least annually.

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Correct Answer: C, E

Question No. 3

You are a member of the Chartered Institute of Management Accountants (CIMA) and you have recently taken up the position of Sales Manager with a company that is facing financial difficulties.The company's termsinclude a commitment to maintainspecifiedprofitability, liquidity and solvency measures; failure to dosowould renderbankloans immediately repayable. The draft financial statements show that the company has not succeeded in complying with all of these requirements.

The financial results are very dependent on various estimates such as receivables impairments.The Chief Executive Officer (CEO) has suggested that these be recalculated so as tobring the financial results within the requirements of the bank. He has asked you to sign pre-dated internal documentation which would imply that, asSales Manager,you initiated these changes in the belief that they would enhance the accuracy of the Financial Statements.

WhichTWOof the following courses of action available to you would be ethically acceptable according to the CIMA Code of Ethics?

ARefuse to sign the documentation on the grounds that you did not initiate this action, and to give the impression that you did would be unethical.

BAgree to sign the documentation on the grounds that these matters are highly subjective anyway and the proposed changes are, at least, plausible.

CRefuse to actually sign the documentation but make clear to the CEO that youwill raise no objection if he amends the Financial Statements asif you had signed.

DSeek legal advice on the matter because you feel you are being placed in a very difficult position.

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Correct Answer: A, D

Question No. 4

Company C wishes to recruit an employee who will have responsibility for, among other things, the receipt and handling of cash.Which THREE of the following would be most likely to provide useful information about the candidate from the point of view of the Internal Auditor?

AThe candidate's academic qualifications.

BReferences from previous employers of the candidate.

CThe candidate's personal referees.

DThe candidate's membership of a professional body.

EConfirmation that the candidate does not have a criminal record.

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Correct Answer: B, D, E

Question No. 5

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

AThe shares have more unsystematic risk than the stock market average.

BThe shares have more systematic risk than the stock market average.

CThe shares have more total risk than the stock market average.

DThe shares have less unsystematic risk than the stock market average.

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Correct Answer: B

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