CIMA CIMAPRA19-P03-1 Exam Practice Test Instant Access

Question 1

Y Company wishes to recruit an employee who will have responsibility for the receipt and handling of cash

From the point of view of the internal auditor which THREE of the following would be most likely to provide useful information about the candidate"?

AConfirmation that the candidate does not have a criminal record

BThe candidate's personal referees

CThe candidate's membership of a professional body

DThe candidate's academic qualifications.

EReferences from previous employers of the candidate.

Answer : B, C, E

Question 2

T is an accountant who has been accused of professional incompetence T agreed to advise a client on currency management and the client lost a great deal of money when a large foreign currency trade receivable declined in value without having been hedged.

Which of the following factors strengthens the case that T has been incompetent?

Select ALL that apply

AT had been too busy to stay up to date with continuing professional development requirements

BSince the loss the client's chief executive has spoken to her business contacts m the industry and all had hedged against a decline in this currency

CT had studied all relevant economic forecasts and had concluded that it would be too expensive to hedge this receivable

DT had offered the client two alternatives showing the costs and benefits of hedging the position, but did not strongly recommend either alternative

ET had never offered advice on foreign currency management before

Answer : A, B, E

Question 3

JNH is a major corporation that stores its customer database in the Cloud JNH has suffered a data breach that has led to customer credit card details being made available for sale on the internet JNH's Head of Security wishes to analyse network traffic at the cloud-based server in order to gain a better understanding of the manner in which the data was intercepted, but has been refused access.

Which of the following is the most likely explanation for the third-party owner's refusal to assist JNH's Head of Security?

AThe Cloud is impregnable and so the breach must have been elsewhere

BThe network data will not have been stored by the server's owner

CThe server will contain data belonging to other clients

DAdmitting the breach would harm the reputation of the Cloud

Answer : C

Question 4

CVB is a consulting firm that occupies a large office with many individual staff offices Staff access the corporate network through a wired network AM work files and company emails are accessed through this network

CVB is upgrading its office heating system At present, each room in the building has a simple, mechanical thermostat that can be used to regulate the heating CVB plans to install smart thermostats in each room These will make it possible to reduce heating costs by monitoring room temperatures centrally, using software that will be installed on the corporate network It would be expensive to connect the thermostats to CVB's existing wired network but it would be possible to connect a wireless router to the network so that CVB could install wireless smart thermostats instead The software on the network's server could then monitor and control the thermostats via the Wi-Fi connection that would be created by the wireless router.

Which TWO of the following statements are correct?

ASecurity concerns should not prevent CVB from upgrading its heating system

BThe wireless thermostats will be designed to be secure

CCyber criminals could not identify and exploit vulnerabilities in the heating system

DThe wireless thermostats could enable a breach of CVB's data

EWired network connections are outdated and should not be used

Answer : A, D

Question 5

With regard to the rote of the audit committee which of the following statements are correct? Select ALL that apply

AThe audit committee should design the system of internal controls

BThe audit committee should decide annually whether it needs an internal audit function

CThe audit committee should decide annually whether it needs an external audit function

DThe audit committee should review and monitor the effectiveness of the company's internal audit function

EThe audit committee should provide arrangements for whistle blowing

FThe audit committee should engage consultants to carry out business reviews

Answer : D, E, F

Question 6

Which of the following is the major advantage of Cloud storage for an enterprise?

AIt provides unlimited free use for the enterprise

BThe enterprise has complete control over it

Cin-house staff are not required to maintain the infrastructure

DSharing storage space with others

Answer : C

Question 7

JKL makes large export sales to customers in country X, whose currency fluctuates significantly against JKL's home currency JKL also makes large purchases from suppliers in countrrOC All of these transactions are in country X's currency

JKL'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

JKL'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 JKL has a currency risk which is not actively hedged

Which of the following statements are correct? Select ALL that apply.

ARisk reports can change behaviour

BRisk reporting is a bad thing

CThe board may be concerned it will be criticised if it does not hedge

DThe board does not want to be blamed for ignoring a risk.

ERisk reporting drives the whole risk management process

Answer : A, C, D

CIMAPRA19-P03-1 P3 Risk Management (Online) Exam Practice Test