CIMA Strategic Level Case Study Exam P3 Practice Test Engine Try These 268 Exam Questions [Q47-Q68]

NO.47 E purchases parts for one of the machines it manufactures from Country X Place the risk classification next to the risk it relates to:

NO.48 UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products.
One of the factors that is being considered in a stress test requested by UJK’s Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts for a significant proportion of the overall manufacturing cost of UJK’s products Which of the following are correct?

NO.49 Which of the following statements best explains why a corporate treasury department should be established as a cost centre rather than a profit centre?

NO.50 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’?

NO.51 Which THREE of the following are true with regard to managing the changeover from an old to a new computer system?

NO.52 H is a farmer. An outbreak of a contagious animal disease has just been detected near the region where the farm is located. This could potentially lead to substantial financial losses for H.
In these circumstances, which of the following responses by H is the most appropriate?

NO.53 KLO is a major quoted car rental company The company is considering publishing its first cyber risk management report AH rental bookings are made online Customers receive a booking reference number that they use to collect their cars from a convenient branch Customers enter their credit card details both so that KLO can take payment for their rental and also so that the customers can be charged automatically for late returns or damage to cars KLO’s management believes that it has three key areas of cyber risk Cyber criminals may wish to make bookings using fictitious data in order to steal KLO’s cars, they may wish to use customers details to identify addresses of people who are away from home so that they can burgle houses and they may wish to abuse customer credit card details KLO’s Board is concerned that admitting to the nsk of stealing cars might encourage cnminals to exploit that vulnerability AJso. it is concerned that customers will be reluctant to rent cars if that would mean that their homes could be at risk of burglary while they are away The vulnerability of credit card details seems obvious and so the Board is not reluctant to admit to that.
Which TWO of the following are correct?

NO.54 THG is a quoted company that manufactures expensive clothes that are sold to upmarket department stores THG’s Board has commissioned a stress test to identify the impact of strategic risks The consultant who is conducting the test is currently investigating the impact that a 1 % increase in interest rates would have on THG.
Which TWO of the following are valid reasons for including an increase in interest rates in the stress test?

NO.55 SDF is a quoted company. Which of the following matters should normally be dealt with by SDF’s audit committee?

NO.56 J plc is a wholesale building supply business. It has a large warehouse where some of its materials are stored.
Last month three accidents occurred where employees were slightly injured whilst moving items from the 5th shelf. The 5th shelf is located 15 metres up from the ground.
This is a health and safety risk and could also be a reputation risk in the longer term.
Which of the following risk mitigations should the company employ?

NO.57 The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

NO.58 The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.

NO.59 A project has been evaluated on the basis that it will cost $22 million and will have a net present value of $4.3 million The project has commenced and $5 million of the $22 million has been invested. A problem has been discovered that will cost an additional $4.5 million to rectify. The $4.5 million will be payable immediately.
What is the NPV of continuing with this project?

NO.60 With regard to the internal audit department, which TWO of the following statements are correct?

NO.61 DFG’s home currency is the D$.
DFG is heavily exposed to the exchange rate between the D$ and the L$, country L’s currency. DFG’s treasurer has noted the following:
* Inflation has been running at 5% in DFG’s home country and 8% in country L
* Interest rates are 7% in DFG’s home country and 11% in country L
* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196 Which of the following statements is consistent with these figures?

NO.62 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?

NO.63 Select the correct ethical principle that corresponds to each ethical dilemma described.

NO.64 A large department store has just discovered that the staff in the store coffee shop have been defrauding the company for the past three years. The six employees who work in the coffee shop have been keeping a proportion of the cash takings, concealing the theft by not recording all sales up in the till They shared the proceeds of this fraud between them The fraud was only uncovered when one of the employees left and his replacement reported the theft to management rather than becoming involved in the crime Which of the following best describes the role of the store’s internal controls in the context of this fraud?

NO.65 SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%.
SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement.
Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.
Give your answer in $ million, to one decimal place.

NO.66 University B has several departments. Each department at times obtains funding from different sources such as government grants and industry sponsorships. The central management of the university has decided to develop a module within its current Information System to track these funds centrally.
The central management of the University has decided to utilise in-house expertise in order to build this module.
Which THREE of the following represent advantages of developing this module and doing so using in-house expertise?

NO.67 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?

NO.68 The long-term prospects for interest rates in the UK and the USA are 2% and 6% per annum respectively.
The GBP/USD spot rate is currently GBP/USD1.71.
Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months’ time?