P3 Exam Questions Get Updated [2022] with Correct Answers [Q19-Q42]

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P3 Exam Questions Get Updated [2022] with Correct Answers

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Learning Concepts of CIMA P3: Risk Management Exam

The CIMA P3 Risk Management Exam is a test that will allow you to analyze all risks involved in the company. The professionals who are responsible for this management don’t only focus on financial risks, but they also pay attention to operational risk, information technology risks, and legal risks. On the exam, there are 6 questions related to this subject. There are 3 different exercises that are designed to reveal whether you have a basic or advanced knowledge of this subject. CIMA P3 Dumps will help you to take the certification exam and get your CIMA P3: Risk Management Certification.

What is CIMA P3: Risk Management Exam

CIMA P3 Risk Management Exam is a Certification exam in the Risk Management domain. It is a requirement for people who work in the risk management domain. CIMA P3 Risk Management Exam is an exam that asks you to analyze all risks involved in the company. The professionals that are responsible for this management don’t only focus on the financial risks, but they also pay attention to the operational risk, information technology risks, and legal risks. CIMA P3 Dumps include all the relevant information related to this exam, including the most frequently searched content. We have developed the most accurate simulations, so you can practice without any problems.

NEW QUESTION 19
XYZ is a large supermarket chain which has engaged in online shopping and home delivenes It has a 24/7 service which runs on a central server allowing its customers to input orders at any time XYZ runs a card loyalty scheme which is hosted on the central server All transactions, whether shop based or on-line, create an update on the central database on the central server Which THREE of the following types of Personally Identifiable Information (Pll) will XYZ have to hold for its customers?

Name

Credit card details

Date of Birth

XYZ Customer identification

Address

NEW QUESTION 20
Having carried out a full capital appraisal for a construction project, H Company has approved the project with initial outflows of $6,000,000 and a net present value of $1,200,000.
The implementation phase has been commenced with 25% of the costs already committed. However when the ground was opened, an underground waterway was revealed which will need to be diverted if the project is to proceed. Work to carry out this diversion has been estimated at $1,300,000.
Which of the following factors will define whether the project should go ahead or not?

The project actually has a higher NPV than before.

The project now has a negative NPV.

Abandoning the project will have an adverse effect on shareholder confidence.

There will be abandonment costs to restore the site.

There may be other unexpected costs to be met if the project continues.

NEW QUESTION 21
Systems Development Lifecycle (SDLC) is used to manage risk within the development of new computer systems.
Which THREE of the following are appropriate controls to manage risk within the SDLC Process?

When planning the new system, a clear business case must be approved specifying functionality, data transformation, expected costs and benefits.

When designing the new system, controls must be put in place to ensure that all the functionalities of the old system are replicated.

When developing the new system, the developers must follow defined programming standards and carry out component test to specified test harness outputs.

When doing the analysis for the new system particular care should be taken over the data specification, transformation and manipulation, ensuring that expected outputs are defined and that such output meets the needs and expectations of the business users.

When the implementation of the new system is taking place, parallel running must be undertaken to ensure the output for the new system exactly matches that from the old system.

The Post Completion Review should take place immediately after the implementation while all the facts are still fresh in everyone’s minds.

NEW QUESTION 22
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.

NEW QUESTION 23
C is an accounts clerKwho is supposed to sign each invoice as evidence that she has conducted checks against supporting documents Sometimes C signs invoices without making these checks D is a member of the internal audit team He has been told to conduct compliance tests on whether C is checking the invoices property Which of the following would grve D a false sense of assurance that C’s checks have been in operation?
Select ALL that appry

D reviewed a sample of invoices for purchases of plant and equipment and found that C had not signed them C explained that she believed that those were authonsed by someone else although the accounts manual indicates that it was her responsibility

asked C a series of open-ended questions about the operation of the purchases system She did not mention anything about detailed checks of invoices against documents

D examined a sample of invoices to make sure that they had been signed by C AH had been signed selected a sample of purchase invoices and compared each to the supporting documents that C is supposed to review Every one of D’s invoices was supported by the related documents

D worked at a spare desk in the accounts department and quietly watched C without telling her She checked every invoice carefully while D was present

NEW QUESTION 24
An IT security consultant has been asked to conduct a forensic analysis of a client’s systems after the discovery of a system breach The consultant discovered several fake user accounts that appeared to have been created by the perpetrators of the breach Before deleting the accounts, the consultant took care to copy as much detail as possible concerning the accounts.
Which TWO of the following are valid explanations for the consultant’s decision to copy the details concerning the fake accounts’?

The details could be of value as evidence in any subsequent criminal trial.

If the fake accounts reappear after deletion that will be a warning that the breach has recurred.

The client could use the account details to target a breach of the perpetrator’s systems.

The consultant can charge more for the time spent analysing the fake accounts.

The analysis of the accounts might help the consultant understand the motive for the breach.

NEW QUESTION 25
Select the most appropriate level of responsibility for managing each of the following risks.

NEW QUESTION 26
As part of risk assessment exercise for a low-cost airline you are requested to match the risks listed below with the most approriate method of minimising or dealing with each risk.

NEW QUESTION 27
The interest rate on EUR deposits is 7%. The interest rate on GBP deposits is 5%. The spot rate is EUR/GBP0.8500. What is the one year forward rate predicted to be assuming interest rate parity holds true?

0.8662

0.8341

0.7500

0.9633

NEW QUESTION 28
ZZ is a data security company that is responsible for cyber security m a large shopping mall 21 uses Network Configuration Management (NCM) to assist it in meeting the various needs of the mall’s user community.
Which THREE of the following are advantages provided by NCM?

NCM allows ZZ to prevent data corruption for different user groups in the mall

NCM allows ZZ to provide different service levels for different user groups in the mall

NCM allows ZZ to segregate traffic for different user groups in the mall

NCM allows ZZ to prevent scanners being used on the public WiFi for different user groups in the mall

NCM allows ZZ to restrict traffic for different user groups in the mall

NCM allows ZZ to stop malware from being spread for different user groups in the mall

NEW QUESTION 29
W plc is a large international supermarket chain. It has many thousands of suppliers and many thousands of others competing for “shelf space” in its supermarkets.
Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?

W plc shall not use its buying power unscrupulously.

W plc shall endeavour to adhere to the terms of its contracts with its suppliers at all times.

W plc shall keep confidential all information received from suppliers and potential suppliers.

W plc shall continuously remind suppliers that it always has several alternative suppliers to choose from.

W plc shall endeavour to take as high a percentage of each supplier’s output as possible.

W plc shall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets.

NEW QUESTION 30
A Firewall is an element of a company’s Information Technology infrastructure.
Which THREE of the following are characteristics of a Firewall?

A Firewall determines the boundary of the “Trusted” components of the company’s Information Technology infrastructure.

A Firewall protects sensitive data against accidental or malicious damage.

A Firewall protects the computer suite against physical attack.

A Firewall protects against unauthorised network access.

A Firewall protects against viruses.

A Firewall can screen every message coming into or out of the company network looking for key words, or attachments.

NEW QUESTION 31
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.

NEW QUESTION 32
C Ltd is a private, family-owned company which is hoping to become listed on a recognised Stock Exchange within the next two years. At the moment, the Board of Directors comprises five directors; four of whom are from the founding family and all of whom are involved in the day-to-day running of the business. The remaining director obtained a seat on the Board three years ago as a condition of an investment by a venture capital fund.
The Board meets in half-day sessions once a fortnight and the Board meetings are reasonably well run. All decisions are taken by the Board as a whole. There are no sub-committees.
Which of the following steps would it be appropriate for C Ltd to take in the light of the proposed listing?

Appoint enough independent non-executive directors (NEDs) that they make up at least 50% of the Board.

Appoint one of the NEDs as Chair of the Board.

Insist that the venture capital company director be removed as he is not necessarily motivated to act in the best interests of C Ltd.

Set up at least three sub-committees namely remuneration, nomination, and audit committees.

Ensure that the current executive directors are given 10 year contracts starting on the day the company is floated, to ensure consistency and continuity in the management of the company.

Set up an “agenda setting” sub-committee consisting of the current executive directors to decide the agenda for each Board meeting.

NEW QUESTION 33
The Dean of Information Technology at Capital City University wishes to develop a degree in ‘ethical hacking” Students will graduate from this course with the skills needed to develop malware, so that they have the ability to reverse engineer malicious software The Dean believes that there will be strong demand for such graduates from employers in IT security and related fields.
Which TWO of the following statements are correct?

Potential employers would be suspicious of job applicants whose choice of degree indicates an interest in malware

The University should not be equipping its students with skills that could be abused for the purposes of committing crime or causing harm

The course should teach students to reverse engineer malware without enabling them to write malware

The University should conduct detailed background checks on applicants before they are admitted to this degree

The academic staff teaching on this degree may struggle to keep up to date with the latest developments in malware

NEW QUESTION 34
You are the Management Accountant for P, a food manufacturing company with an annual sales revenue of $5 million.
You discover that the Production Manager’s records are inconsistent. Raw materials purchased do not agree to the total recorded for transfers to production plus wastage. There is an average shortfall of 2% of purchases.
You investigated and discovered that there are often mistakes made during manufacturing that results in food that is safe to eat, but cannot be sold because of visual flaws. The Production Manager is supposed to scrap all such damaged product and write all such losses off as waste, but you discovered 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.
What should you do?

Do nothing, this is a good cause and the amount is insignificant.

Instigate disciplinary action, this is both theft and poor management.

Instigate a confidential, but documented, review with the Production Manager and tell him to stop.

Instigate a review of the production process to potentially reduce the amount of wastage.

Instigate a process whereby edible but unsellable items can be given to the charity officially.

NEW QUESTION 35
H is a departmental manager in a private college. The main measure of performance used to assess the Department Manager’s effectiveness is meeting the college budgets. The budget for each year is based on the actual expenditure of the previous year adjusted for specific one-off items.
Which of the following would arise from using the meeting of this type of budget as a performance measurement?

Cost overruns because managers might fail to meet their budgets.

Managers taking on new projects that have too much risk attached to them.

Managers engaging in unnecessary spending in order to avoid having their budgets reduced the following year.

Management of various departments not cooperating sufficiently with each other because each is very concerned that to do so would incur extra costs against their budgets.

Management refusing to provide some necessary service to students (for example, extra tutorials) because it would cause their budget not to be met.

Management taking more than the optimal number of students into their department.

NEW QUESTION 36
Which of the following best describes the conflict between maximising profit and maximising shareholder wealth?

Managers are generally more interested in maximising shareholder wealth than in maximising profits or sales.

Profit and shareholder wealth are unrelated.

Tax is paid on profit, but not on shareholder wealth.

Profits can be increased from one year to the next without increasing shareholder wealth.

NEW QUESTION 37
Which of the following scenarios might be relevant stress tests for a potential lender to conduct? Which TWO of the following answers are correct?

The potential borrower could be involved in an accounting scandal

The potential borrower might have manipulated the figures in the loan application.

The potential borrower might lose its three main customers.

The potential borrower might seek further debt in the future.

The potential borrower might have to agree to a major wage increase for its employees.

NEW QUESTION 38
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.

Doing so may improve independence.

Decisions relating to internal audit can be based solely on cost.

Internal audit will have a better understanding of D plc’s objectives and culture.

Specialist skills may be more readily available.

Risk of staff turnover is passed to the outsource company.

NEW QUESTION 39
B is a company with a strong risk appetite. Which of the following are benefits of using the certainty equivalent method of capital investment appraisal in B’s case?

A high level of subjective judgment is required from the decision maker.

It avoids the need for the investor to estimate an appropriate discount rate which reflects the risk of the project cash flows.

By building a risk adjustment into the discount rate, it takes greater account of risk in later time periods.

More risky projects are more likely to be accepted using this method of appraisal.

The method produces the most appropriate results in cases where project cash flows do not increase in risk over time.

NEW QUESTION 40
Select the correct ethical principle that corresponds to each ethical dilemma described.

NEW QUESTION 41
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.

NEW QUESTION 42
Company M has lost 25% of its revenue in the last three months due to bad debts. One of the receivables written off was from a long standing customer and the other three were from new customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?

A credit check should be carried out on each new customer.

Credit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.

Two sales staff must authorise new customers and sign a form stating that they have done so.

An aged analysis of customer balances must be reviewed every month.

As soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced.

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P3 Exam Questions Get Updated [2022] with Correct Answers [Q19-Q42]

Learning Concepts of CIMA P3: Risk Management Exam

What is CIMA P3: Risk Management Exam

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Learning Concepts of CIMA P3: Risk Management Exam

What is CIMA P3: Risk Management Exam

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