Free CIMAPRA19-P03-1 Exam Braindumps
P3 Risk Management (Online) Questions 264–268 (page: 20)

Updated On: 1-Feb-2026

The Board of Directors of VCX, a state-owned electricity company, includes four executive directors the Chief Executive Officer, the Finance Director the Operation Director and the Technical Director All of the shares in the company vest in the Office of the Minister for Energy, who is entitled to appoint two non-executive directors to the Board It has been alleged that the Minister appoints political "insiders" who have no particular knowledge of. or interest in. the electricity industry There are three further non-executive directors
· L, who spent seven years as Chief Executive of VCX, but retired from that role two years ago, · M, who spent several years on the Board of a state electricity company in a different country to VCX but who resigned from it before accepting the position with VCX: and · N, who is a qualified and experienced professional accountant In relation to best practice in respect of Corporate Governance, which of the following statements are valid? Select ALL that apply

  1. None of the executive directors should be allowed to sit on the Remuneration Committee
  2. M is unsuitable to be part of the Board because his previous involvement with a similar company in another country is a conflict of interest.
  3. L can now be considered to be an independent non-executive director
  4. M and N are both suitable appointees to the Audit Committee
  5. The Finance Director should be part of the Audit Committee because of her expertise
  6. Non-executive directors should be responsible for monitoring the performance of executive management especially with regard to company strategy and objectives

Answer(s): A,D,F



DRAG DROP (Drag and Drop is not supported)
E purchases parts for one of the machines it manufactures from Country X Place the risk classification next to the risk it relates to:

  1. See Explanation section for answer.

Answer(s): A

Explanation:



JC is a car manufacturing company in country C and manufactures diesel cars It is facing a number of serious risks Which TWO of the following nsk factors are external?

  1. JC's marketing director is considering an attractive job offer from one of J's main competitors
  2. Country F, JC's main market, is threatening to impose tariffs on car imports
  3. JC is facing court action arising from injuries to customers caused by an alleged brake failure in one of its cars
  4. Diesel cars are being criticised by experts because it is believed they cause more harmful pollution than petrol
  5. JC's production staff are complaining that their wages are too low compared to wages paid to other employees.

Answer(s): B,D



HWG is a large company which grows and processes coffee The coffee is sold to supermarkets, branded with their names for sale as "own brand" products HWG brands and packages the coffee using the supermarkets' own designs
HWG's directors are considering a strategic proposal to develop a range of coffees to be sold under a brand that HWG will develop
Which TWO of the following should the directors consider as part of their strategic analysis?

  1. The design of packaging for the new brand
  2. The reaction of the supermarkets who currently buy coffee from HWG
  3. The sales volume forecast for the new coffee
  4. The choice of name for the new brand
  5. Recruiting a marketing firm to advertise the new coffee

Answer(s): B,C



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

  1. 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
  2. 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
  3. 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
  4. 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

Answer(s): B,C,D



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