|Exam Name||:||P3 Risk Management|
|Questions and Answers||:||84 Q & A|
|Updated On||:||Click to Check Update|
|PDF Download Mirror||:||CIMAPRA19-P03-1-ENG Brain Dump|
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When a new computer system is being implemented there are several possible methods for managing the changeover from the old system to the new system.
Which THREE of the following are true?
A . Phased changeover is the safest and slowest method of changeover.
B . Phased changeover moves individual portions of the business to the new system one at a time. C . Pilot changeover moves the simplest part of the business to the new system first.
D . Parallel running involves keeping the old system running, normally until certain data retention criteria are met or confidence is gained, while the new system deals with the new workload. Data input is usually carried out on both systems.
E . Direct changeover, or Big Bang is only used when the systems are significantly different such that comparing the outputs of the two systems is largely irrelevant.
F . All methods of changeover carry high risk and it is the preparation, consideration of data compatibility and data cleansing before the changeover which has the biggest impact on the smoothness of the transition.
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?
A . NCM allows ZZ to prevent data corruption for different user groups in the mall
B . NCM allows ZZ to provide different service levels for different user groups in the mall C . NCM allows ZZ to segregate traffic for different user groups in the mall
D . NCM allows ZZ to prevent scanners being used on the public WiFi for different user groups in the mall E . NCM allows ZZ to restrict traffic for different user groups in the mall
F . NCM allows ZZ to stop malware from being spread for different user groups in the mall
Amber selects appropriate suppliers and places purchase orders.
Brian passes invoices for payment and submits payment instructions to the bank. Chris checks incoming inventory and unpacks goods from their containers. Dirwan posts purchase invoices and files invoices and supporting documents. Which member of staff could most easily commit fraud?
A . Amber B . Brian
C . Chris D . Dirwan
Division A of X plc produced the following results in the last financial year. Net profit $200,000 Gross capital employed $1,000,000
For evaluation purposes all divisional assets are valued at original cost.
The division is considering a project that has a positive NPV, will increase annual net profit by $15,000, but will require average inventory levels to increase by $50,000 and non-current assets to increase by $50,000.
X plc imposes a 16% capital charge on its divisions.
Given these circumstances, will the evaluation criteria of return on investment (ROI) and residual income (RI) motivate division A managers to accept the project?
A . ROI Yes RI Yes B . ROI Yes RI No C . ROI No RI Yes D . ROI No RI No
A project has been evaluated on the basis that it will cost $14 million and will have a net present value of $2.3 million. The project has commenced and $3 million of the initial $14 million has been invested. A problem has been
discovered that will cost an additional $2.5 million to rectify. The $2.5 million will be payable immediately.
What is the NPV of continuing with this project? A . -$3 million
B . -$0.2 million C . $1.8 million D . $2.8 million
Answer: D Question: 81 DRAG DROP
Identify, from the list provided, which category of business risk most accurately describes the events detailed below.
In the purchasing department, the purchasing manager selects and approves all suppliers, as they are the only person with sufficient experience to do so. They use a very limited number of suppliers because they can rely on these suppliers to provide goods of the quality required at a competitive price. They do not keep any documents in relation to negotiations with other potential suppliers or other quotes obtained.
In relation to the above, which of the following statements are valid?
A . The fact that the purchasing manager uses a very small number of suppliers is, in itself, a sign of poor internal controls.
B . It is acceptable for clerks in the trade receivables section to make journal adjustments without authorisation provided the amounts involved are not material to U’s financial statements.
C . It is acceptable for clerks in the trade receivable section to make journal adjustments without authorisation, provided they have no access to cash receipts.
D . The fact that the purchasing manager does not keep documentation relating to negotiations with suppliers, or potential suppliers, is evidence that they are involved in fraudulent activity.
E . Clerks making journal adjustments without reference to their supervisor is evidence of inadequate separation of duties.
F . The way the role of purchasing manager is carried out in U increases the chance that the company will fall victim to fraudulent activity.
Answer: E,F Question: 83 DRAG DROP
Select the most appropriate level of responsibility for managing each of the following risks.
A UK based company is considering an investment of GB£1,000,000 in a project in the USA. It is anticipated that the following cash flows will arise from this project.
The cash flows will be either US$400,000 with a probability of 40% or US$700,000 with a probability of 60% for each of the next three years; remitted to the UK at the end of each year.
Currently GB£1.00 is worth US$1.30.
The expected inflation rates in the two countries over the next four years are 2% in the UK and 4% in the US. Applying the Purchasing Power Parity Theory, which of the following represents the expected net present value of the
project in GP£ (to the nearest whole pound)?
A. GB£287,639 B. GB£391,640 C. GB£(111,973) D. GB£554,047