Free CIMA P3 Practice Exam with Questions & Answers | Set: 3

ABC should monitor and record every device type used for access

ABC should monitor and record every out of hours access

ABC should monitor and record all failed access attempts.

ABC should monitor and record every keystroke of every user.

It is always possible to remove all risks when undertaking large projects.

If a project has high risks it should always be accepted as the rewards will always be high.

If a project has low risks it will usually have relatively low returns.

Risk can always be transferred to someone else.

Risk should be carefully considered when evaluating possible future projects.

Commission a reputable firm of structural engineers to carry out a review of all power stations owned by TDC

Send experts employed by TDC to the site of the collapse so that they can gather information first hand on what happened

Draw up contingency plans in case some of TDC's power stations need to be shut down

Decide that the information available to date is too uncertain to take any action for now

Attempt to increase the level of insurance cover against this type of eventuality

Issue a press release confirming that all TDC's power stations are "entirely safe'.

Being asked to buy very small gifts for key clients.

Being asked to work weekends, playing golf with clients.

Being asked to work weekends, taking clients to night clubs making sure they have as much alcoholic drink as they want so that they will sign contracts.

Being asked to work weekends working out tenders for new contracts.

The directors receive a risk-free gain

Shareholders become nervous when the directors hold shares

The shares are out of the money at the exercise date

It is a conflict of interest for directors to be shareholders.

Introduce credit checks for new customers.

Reduce the company bank loans.

Pay suppliers' invoices quicker.

Look for a loan with a lower interest rate.

Material errors will be prevented or detected in a reasonable time period by employees in the course of carrying out their job

Management's plans have not been circumvented by collusion

Management procedures and processes are properly evaluated

The internal auditing department's oversight of management's performance is achieved economically and efficiently

Alter the pricing structure in order to increase the price for sending each item but decrease the subscription element of the fee.

Ensure that a credit check is carried out before a subscriber is accepted.

Reduce the rate of commission payable to any sales person who fails to sign up at least an agreed minimum number of customers each month.

Alter the commission arrangements so that commission is payable only when the subscriber signs up for a second year.

Preparing a monthly report for sales persons detailing the performance of each new customer they have signed up over the previous year.

The risk report means that the shareholders know exactly how bad the risk is.

The risk report says nothing useful about the risk.

Now the shareholders know the directors are aware of the risk.

If the risk report had not reported the risk the shareholders might not have been aware of the risk.

The shareholders now have more useful information.

Ensure employees work with the same staff all the time to build team spirit

References should be obtained for all new employees from their last two employers

Introduce a policy that all new employees must undertake a three month trial period

Carry out a criminal record check for all new employees.

Only employ people who have been employed in the retail mobile phone industry for two years