CIMA P3 Real Exam Questions Guaranteed Updated Dump from ExamCost [Q17-Q36]

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CIMA P3 Real Exam Questions Guaranteed Updated Dump from ExamCost

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Q17. VBN uses a balanced scorecard to monitor the performance of its divisions.
Classify each of the following decisions taken by a division’s management team as either commercially sound or dysfunctional.

Q18. G is an administrator who works for TRF TRF issues its staff with laptop computers that can be linked to the corporate network via Wi-Fi when they are working in the office Staff are permitted to work from home and can connect their company laptops to TRF’s network via the internet in order to access files and send and receive emails The software on G’s laptop has not been updated for several months When G last updated the software it erased a draft report that he had been working on from his machine Ever since, whenever he logs in and is automatically offered the opportunity to install available updates he clicks the ‘install later’ option on his screen Some of the outstanding updates relate to the laptop’s operating system and others to the software applications such as word processing and spreadsheet packages Which TWO of the following are correct?

G should be disciplined for failing to install updates

G’s failure to update the operating system is more serious than the failure to update applications.

There will be no security risks if G only ever connects to TRF’s network via the office Wi-Fi.

Users know whether updates are necessary because they know how their laptops are used.

TRF should not permit staff the option of deferring updates

Q19. A firewall in a computer suite is designed to

prevent the overloading of the network by unauthorised traffic

prevent a disaster from occurring by limiting the spread of any fire

prevent viruses from infecting the network

prevent unauthorised traffic into defined areas of the network

Q20. In relation to the use of the adjusted present value (APV) technique, which of the following statements are correct?

To apply APV, the proportions of debt and equity in the capital structure must be known.

To apply APV the actual amounts of debt and equity in the capital structure must be known.

The interest tax shield on the project’s debt must be known, or at least estimated.

The weighted average cost of capital – net present value technique and the APV technique will, if applied correctly, give the same answer.

Q21. The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.

Q22. HBN is a service company that offers cloud-based data storage and management on behalf of clients HBN pays an independent accountancy firm to review its cybersecurity arrangements, conduct penetration tests and report to HBN’s Board on the results Which TWO of the following are correct?

Potential clients for HBN’s services will expect to receive copies of these independent reports immediately after they are submitted.

The independent accountancy firm will disclose all of the shortcomings that it identifies in its report, even if they embarrass HBN

HBN could save time and reduce cost by having its own internal audit department conduct these investigations and report accordingly.

It would prove simpler for HBN to permit clients to conduct their own cybersecurity reviews that would take account of the sensitivity of their data

The independent accountancy firm will guarantee that there are no control weaknesses in HBN’s systems, provided its results prove satisfactory

Q23. P has decided to invest in a new warehouse at a cost of $2,000,000. The discount rate of the project is 18% and the present value of the tax shield is £26,000.
What is the minimum acceptable Internal Rate of Return of the project?

18%

17.77%

18.23%

16.50%

Q24. Multinational companies have a variety of methods by which to manage currency risk.
Select ALL internal hedging methods from the following list.

Leading and lagging

Invoice in home currency

Matching

Pooling

Money market hedge

Forward contracts

Q25. Move the category of risk to the box beside the risk description it best matches.

Q26. SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%.
SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement.
Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.
Give your answer in $ million, to one decimal place.

Q27. You are a junior accountant in a local accountancy firm with many clients in various businesses.
Your immediate manager has asked you to collect certain personal details about clients’ staff from the firm’s records. You suspect that his intentions are malicious.
You asked your manager to explain why he required these details and he told you it is none of your business.
What should you do? Select TWO responses.

You should stop being impertinent and obtain the details as instructed.

You should try to find out what the manager wishes to use the details for.

You should keep a log of all the facts that the manager has requested, including the dates on which those requests were made.

You should seek to have a confidential discussion with the manager’s superior and express your concerns.

You should raise the matter with the firm’s external auditors.

Q28. Identify, from the list provided, which category of business risk most accurately describes the events detailed below.

Q29. Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?

There could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens

Budget changes could have an impact on the funding available to college and university libraries

The terms offered by media companies for film rights for books could change

The quality of output from printing presses might improve

Environmental concerns could lead to a decrease in the availability of trees to make paper

Q30. TLY sell building materials such as bricks sacks of concrete and paving slabs to builders Materials are kept in a large yard Customer orders are fulfilled by a team of 30 employees who use forklift trucks to move sold items to the loading bay, from where they are loaded onto lornes for dispatch to the customer The sales office prepares dispatch notes, which are used by the yard employees to identify the items that have been ordered Which TWO of the following controls would be cost-effective ways to prevent the theft of inventory by TLY’s staff?

Have a security guard check outgoing lorry loads of materials against a dispatch note

Conduct random searches of yard staff when they are leaving at the ends of their shifts

Install closed circuit television cameras covering the whole yard and with screens constantly monitored by security staff

Forbid staff from parking their cars in the yard

Have a separate buying department, whose staff do not have access to the yard to place orders for replacement inventory

Q31. 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?

There is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

The probability is so low as to be ignored.

The directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

The calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Q32. Z is a multinational pharmaceuticals company with operations across Europe, America and Asia.
It is currently investigating the possibility of setting up a chemical and specialist production facility in South America. This would be a multi $billion investment. What steps should Z take to manage the following risks in this long term venture.

Q33. H Ltd is a logistics company which is likely to be seeking a Stock Exchange listing shortly. The directors wish to strengthen the company’s internal controls.
Which of the following statements are valid?

The Board should take direct responsibility itself for all organisational control and avoid delegating.

The Board should ensure that the internal accounting system provides accurate and relevant information.

The Board should ensure that there is regular assessment of the financial impact of contingencies.

The Board should communicate organisational policies only to members of staff who are part of the management team.

Internal Audit should be used to check on the detailed operation of controls in the operating departments.

Q34. 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.

Q35. Some sensitive computer systems are particularly attractive to cyber criminals. Passwords may be used as one element of restricting access to legitimate users, but the password systems should be designed with great care.
Which of the following methods would enhance a password access system?

The use of a two level system, a primary password plus questions correctly answered from set of queries, logged at system set up time.

The use of drop down menus, using screen coordinates rather than transmitting keystrokes over a communication link.

The logging and reporting of failed password attempts.

The password should be typed quickly.

The use of family members names, known only to the individual and not known by colleagues.

The use of a sequence of passwords, using upper and lower case with numbers, easy to remember but regularly changed for example; November 11, December12, January01.

Q36. Select the correct ethical principle that corresponds to each ethical dilemma described.