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CIMA P3 Dumps Questions Answers

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Last Update: Mar 31, 2023
226 Questions
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Risk Management Questions and Answers

Questions 1

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.

What are the limitations of an internal control system in Rio's business?



Internal controls are only suitable for large businesses.


Employees could ignore the internal controls.


If Rio does not support the internal control system then the controls may not be adhered to.


Internal controls may slow down the speed with which the architects can respond to enquiries.


Internal controls will usually mean hiring more staff.

Questions 2

Which of the following statements concerning the use of balanced scorecards to measure divisional performance is correct?



Dysfunctional behaviour is more difficult than under traditional reporting because a wide range of factors will be measured and reported.


Dysfunctional behaviour is impossible because divisional managers are evaluated on so many different decisions.


Contradictory and inconsistent targets prevent balanced scorecards being a useful tool for performance evaluation.


The input for balanced scorecard reports comes from many sources so it is not possible to misrepresent performance.

Questions 3

Smalltown had a problem with people parking cars on the town's mam shopping streets instead of in the nearby car parks The parked cars created congestion and made it difficult for delivery vehicles to unload Smalltown's local government had employed traffic wardens to enforce parking regulations by issuing parking fines to motorists who parked for more than the permitted 30 minutes.

The local government took further action to deal with this problem It banned parking on the busiest streets, it introduced parking charges in the remaining streets and it made it free to park m the town's car parks for up to two hours Fewer people now park cars on the streets because of the charges, but those who do generate significant revenues for the local government Fewer traffic wardens are required and so wage costs have reduced

The local goverment auditors have decided to carry out a value for money audit of the parking system

Which of the following is a measure of effectiveness?



The main shopping streets are no longer congested


The remaining traffic wardens are less stressed because they no longer receive abuse by motorists.


Parking enforcement costs less than before


Revenues from parking have increased

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