Free CIMA CIMAPRA19-P03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA19-P03-1-ENG exam questions and correct answers

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Total 276 Questions | Updated On: Jan 06, 2026

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Question 1

Company M has lost 25% of its revenue in the last three months due to bad debts. One of thereceivables written offwasfroma long standing customer and the other three werefromnew customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?

A : credit check should be carried out on each new customer.

B : edit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.

C : o sales staff must authorise new customers and sign a form stating that they have done so.

D : aged analysis of customer balances must be reviewed every month.

E : soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced

Answer: A,D

Question 2

Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?

A : ere could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens

B : dget changes could have an impact on the funding available to college and university libraries

C : terms offered by media companies for film rights for books could change

D : The quality of output from printing presses might improve

E : vironmental concerns could lead to a decrease in the availability of trees to make paper

Answer: B,C

Question 3

C is a large international supermarket chain. It has many thousands of suppliers and many thousands of potential suppliers competing for shelf space m its supermarkets.
Which of the following provisions would be appropriate for C to include m its ethical code in relation to its suppliers?
Select ALL that apply

A : hall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets

B : hall endeavour to adhere to the terms of its contracts with its suppliers at all times

C : hall continuously remind suppliers that it always has several alternative suppliers to choose from.

D : hall not use its buying power unscrupulously.

E : hall keep confidential all information received from suppliers and potential suppliers

F : hall endeavour to take as high a percentage of each supplier's output as possible

Answer: A,B,D

Question 4

D plc is a public relations company. Shares in D plc have recently been listed on the UK stock exchange.
D plc has an internal audit department that reports to the Chief Executive Officer (CEO). The CEO is considering outsourcing internal audit to an audit firm, whichwould not be the firm that conducts D plc's external audit.
Identify THREE advantages to D plc of outsourcing internal audit in this way.

A : ing so may improve independence.

B : cisions relating to internal audit can be based solely on cost.

C : ternal audit will have a better understanding of D plc's objectives and culture.

D : ecialist skills may be more readily available.

E : k of staff turnover is passed to the outsource company.

Answer: A,D

Question 5

M, a manufacturing company, has had some problems with defects in one of the main productsitproduces. This product has been made by the company for many years and is very profitable. Last monthithad over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability
Which of the following controls could M introduce to reduce defects and also increase profitability?

A : could increase the number of quality control staff.

B : could introduce a procedure where quality control staff sign a form at the end of each dayto say they have examined 1 in 10 products for defects and they are satisfied with the quality.

C : production director could examine one in every 10 products and sign a form to say they are satisfactory.

D : could service machinery at least once a month as recommended by the machinery supplier.

E : could check all employees qualifications to ensure they are qualified for their jobs.

Answer: A,B,D

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Total 276 Questions | Updated On: Jan 06, 2026

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