Free CIMAPRA19-P03-1 Practice Test Questions and Answers (2026) | Cert Empire

JKL makes large export sales to customers in country X, whose currency fluctuates significantly against JKL's home currency JKL also makes large purchases from suppliers in countrrOC All of these transactions are in country X's currency JKL's treasurer does not actively hedge currency risks because there is a natural hedge in place due to the company making both sales and purchases in the same currency JKL's board has instructed the treasurer to put active hedging measures in place because the risk report would otherwise have to disclose the fact that JKL has a currency risk which is not actively hedged Which of the following statements are correct? Select ALL that apply.

The management of U is reviewing internal controls throughout the company. It has noted the following:- 1. In the trade receivables section, journal adjustments are made by the clerks, without any reference to their supervisor. Journal adjustments may relate to sales returns, discounts allowed, or transfers between accounts. 2. 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?

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

Which of the following are the Committee of Sponsoring Organisations (COSO) key principles of enterprise risk management? Select ALL that apply.

H manufactures and sells healthy dietary supplements. The company recruits individuals as part- time agents to sell its products to friends and colleagues. These agents are required to buy H's products and to resell them at a small mark-up. For a fee, H will provide agents with training in persuasive selling techniques. Agents who pass exams at the conclusion of this training can become distributors. Distributors buy bulk quantities of H's products at a discount and can recruit their own sales agents. Those agents can also take training and can recruit agents of their own. At what stage does H stop being a legitimate business and become a pyramid selling fraud?

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?

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?

YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage. The project was the responsibility of the production department, which is presently managed by G. When the project was proposed, the production department was managed by H. H is now YGH's Director of Operations. How should the finding from this post completion audit be interpreted?

You have just been employed as a management accountant in a small business with an annual turnover of $0.5 million. You have a wide range of duties because the business is small. Which of the following is an ethical risk?

Which of the following summarises Purchasing Power Parity Theory (PPPT)?