P3 Certification Overview - [Jan 15, 2022] Latest P3 PDF Dumps [Q51-Q72]

P3 Certification Overview - [Jan 15, 2022] Latest P3 PDF Dumps

The Best CIMA P3 Study Guides and Dumps of 2022

NEW QUESTION 51
Which of the following statements are true of residual risk?

A. Residual risk may be accepted if management feels the company can bear the risk.
B. If residual risk is too great then the company should not expose itself to the risk situation.
C. Residual risk is the risk that remains after risk mitigation has taken place.
D. Residual risk has to be accepted.
E. Residual risk should never be accepted.

Answer: A,B,C

NEW QUESTION 52
Which of the following is the major advantage of Cloud storage for an enterprise?

A. The enterprise has complete control over it
B. Sharing storage space with others
C. in-house staff are not required to maintain the infrastructure
D. It provides unlimited free use for the enterprise

Answer: C

NEW QUESTION 53
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?

A. The Cloud is impregnable and so the breach must have been elsewhere
B. Admitting the breach would harm the reputation of the Cloud
C. The server will contain data belonging to other clients
D. The network data will not have been stored by the server's owner

Answer: C

NEW QUESTION 54
S is a senior production manager for LK, which is about to set up a new production line requiring S4 million of new specialist equipment.
S's daughter goes to school and is friends with the daughter of R.
the sales manager in GG. GG is a potential supplier of the specialist equipment that LK requires.
R owns a holiday home. S's daughter regularly accompanies R's daughter on family vacations at this holiday home, all at R's expense.
S is the only person working for LK who is qualified to select the specialist equipment. GG will definitely bid for the sale.
What should S do?

A. S should exclude GG from the bidding process.
B. S should permit GG to bid, but should insist that R should not be involved.
C. S should declare an interest, giving details of his daughter's friendship with R's daughter, but should participate fully in the assessment process
D. S should declare an interest and withdraw from the assessment process.

Answer: C

NEW QUESTION 55
K Ltd is an on-line travel agency specialising in budget package holidays to a small number of popular locations. The holidays that it sells are made up of a "package" of flights, hotel accommodation and food. K Ltd's Finance Director is concerned that the company's scope of operation is too narrow and wishes to diversify.
Identify TWO actions that K Ltd should take immediately.

A. Expand the number of locations it currently serves.
B. Engage market researchers to look at future trends in holiday requirements.
C. Bulk book cruise accommodation and create a special package deal for retired couples.
D. Re-image the locations it currently serves to make them more exotic and family friendly.
E. Review the customer base looking at feedback, repeat sales and single visit statistics.
F. Set up a number of activity holidays; adventure, sports and trekking for example.

Answer: B,E

NEW QUESTION 56
D plc is a public relations company. Shares in D plc have recently been listed on the UK stock exchange.
D plc has an internal audit department that reports to the Chief Executive Officer (CEO). The CEO is considering outsourcing internal audit to an audit firm, which would not be the firm that conducts D plc's external audit.
Identify THREE advantages to D plc of outsourcing internal audit in this way.

A. Decisions relating to internal audit can be based solely on cost.
B. Risk of staff turnover is passed to the outsource company.
C. Internal audit will have a better understanding of D plc's objectives and culture.
D. Specialist skills may be more readily available.
E. Doing so may improve independence.

Answer: B,D,E

NEW QUESTION 57
YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage.
The project was the responsibility of the production department, which is presently managed by G.
When the project was proposed, the production department was managed by H.
H is now YGH's Director of Operations.
How should the finding from this post completion audit be interpreted?

A. H should be held accountable for the overspend on the project.
B. The production department should not be granted funding for future projects unless there are compelling reasons to proceed.
C. G should be held accountable for the overspend on the project.
D. YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.

Answer: D

NEW QUESTION 58
BCD has set up a number of functions within its security operations centre (SOC) One of these is a Hunt team.
Which of the following is the primary function of a Hunt team?

A. To look for weaknesses in other peoples' systems
B. To look for solutions in response to threats.
C. To look for signs that BCD's system has been breached
D. To look for weaknesses in BCD's cyber security system.

Answer: C

NEW QUESTION 59
B is a horticultural retailer with limited funds available to acquire new retail property.
B's Finance Manager has analysed two potential property investments. Investing in property P shows an IRR of 21% while the IRR on property Q is 17%.
The Finance Manager has also advised that the NPV for property P is $750K, while the NPV of property Q is
$850K.
The Board needs to choose between the two properties as it has insufficient funds for both. Based purely on the Finance Manager's analysis, which of the following is true?

A. Board members who wish to maximise return on capital employed will want property Q while those who wish to maximise shareholder wealth will want property P.
B. Board members who wish to maximise return on capital employed will want property P while those who wish to maximise shareholder wealth will want property Q.
C. Premises Q is clearly better than property P in all respects.
D. Premises P is clearly better than property Q in all respects.

Answer: B

NEW QUESTION 60
You are in process of compiling a risk register for P, a company which maintains railway tracks. This helps prevent accidents and ensures the trains are not disrupted due to problems with the track.
Which of the following statements are valid?

A. The risk register for P should be updated frequently: for example, every two weeks.
B. A risk register should concern itself with only the direct consequences of each risk such as injury to passengers and ignore indirect risks, such as re-routing trains due to an accident.
C. A properly compiled risk register will identify all the risks to which P could possibly be exposed.
D. The risk register should specify the individual, or group of individuals, responsible for the management of each risk.
E. A risk register should profile each risk in terms of probability and consequence.

Answer: D,E

NEW QUESTION 61
R is a company running gas-fired power stations in Western Europe. The Risk Committee has just received a report that a power station built to the same design and specification in a developing country has recently collapsed. The causes of the collapse are unclear, but if something similar were to happen in Europe the consequences for R could be catastrophic.
Which of the following actions being considered by the Risk Committee are ethical?

A. Send experts employed by R to the site of the collapse so that they can gather information first hand on what happened.
B. Issue a press release confirming that all R's power stations are "entirely safe".
C.
D. Draw up contingency plans in case some of R's power stations need to be shut down.
E. Decide that the information available to date is too uncertain to take any action for now.
F. Attempt to increase the level of insurance cover against this type of eventuality.
G. Commission a reputable firm of structural engineers to carry out a review of all power stations owned by

Answer: A,D,G

NEW QUESTION 62
V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.

Answer:

Explanation:

NEW QUESTION 63
E purchases parts for one of the machines it manufactures from Country X Place the risk classification next to the risk it relates to:

Answer:

Explanation:

NEW QUESTION 64
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.

Answer:

Explanation:

NEW QUESTION 65
You are the management accountant for YY a food manufacturing company with an annual sales revenue of
$6 million
You discover that the production manager's records are inconsistent Raw materials purchased do not agree with the total recorded for transfers to production plus wastage There is an average shortfall of 2% of purchases You have investigated and discovered that there are often errors made during manufacturing that results in food that is safe to eat but. because of visual flaws, cannot be sold The production manager is supposed to scrap all such damaged products and write all such losses off as waste You have discovered however that he has been giving the damaged food to a charity that assists homeless people No records are made of such gifts in order to conceal the losses due to manufacturing errors Which of the following actions should you take? Select ALL that apply

A. Instigate a confidential but documented review with the production manager and tell him to stop
B. Instigate disciplinary action this is both theft and poor management
C. Instigate a process whereby edible but unsellable items can be given to the charity officially
D. Instigate a review of the production process to potentially reduce the amount of wastage.
E. Do nothing; this is a good cause and the amount is insignificant

Answer: B,C,D

NEW QUESTION 66
DRF is a manufacturing company
The internal auditor is conducting an investigation into the operation of the payroll system and has discovered a compliance error The Head of Human Resources (HR) is required to add any new names to the payroll, using a specific computer password The Head of HR was absent for a month because of ill health During that period a senior member of the Wages Office, who is normally responsible only for organising wage payments, was issued a temporary password in order to add new names to the payroll The password was cancelled when the Head of HR returned to work Which TWO of the following statements are correct?

A. The payroll should be checked thoroughly to ensure that only authorised staff are present
B. The senior member of the Wages Office could have committed fraud
C. The internal auditor should ignore the error because it only lasted for one month
D. The compliance error should be overlooked because it was as a result of staff absence
E. The senior member of the Wages Office should be disciplined for being in breach of the rules

Answer: A,E

NEW QUESTION 67
R is a company running gas-fired power stations in Western Europe. The Risk Committee has just received a report that a power station built to the same design and specification in a developing country has recently collapsed. The causes of the collapse are unclear, but if something similiar were to happen in Europe the consequences for R could be catastrophic.
Which of the following actions being considered by the Risk Committee are ethical?

A. Send experts employed by R to the site of the collapse so that they can gather information first hand on what happened.
B. Issue a press release confirming that all R's power stations are "entirely safe".
C.
D. Draw up contingency plans in case some of R's power stations need to be shut down.
E. Decide that the information available to date is too uncertain to take any action for now.
F. Attempt to increase the level of insurance cover against this type of eventuality.
G. Commission a reputable firm of structural engineers to carry out a review of all power stations owned by

Answer: A,D,G

NEW QUESTION 68
Company N is considering opening another production plant in Northland, a country 2000 km from its current production plant location N would also sell its products in Northland Which TWO of the following are business risks'

A. The risk that the Northland currency may strengthen making it expensive.
B. The risk that Northland's government may introduce policies that would be unfavorable to N.
C. The risk that Northland may not be able to support N's technology requirements.
D. The risk that it may be difficult to sell its products in Northland.
E. The risk that interest rates may rise making N's loans expensive.

Answer: C,D

NEW QUESTION 69
P Ltd, a service company, is seeking to recruit engineers to work in its maintenance division. Which TWO of the following suggestions will be most likely to help prevent fraud when recruiting the engineers?

A. Checking that the engineers have a professional engineering qualification.
B. Having a defined fraud policy statement that includes recruitment issues.
C. Checking that the engineers have previous experience in a similar business.
D. Checking that the engineers do not belong to a union.
E. Taking up references from previous employers.

Answer: B,E

NEW QUESTION 70
V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.

Answer:

Explanation: