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: Mar 13, 2026

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Question 1

Which of the following statements are correct?

A : is always possible to remove all risks when undertaking large projects.

B : a project has high risks it should always be accepted as the rewards will always be high.

C : a project has low risks it will usually have relatively low returns.

D : k can always be transferred to someone else.

E : k should be carefully considered when evaluating possible future projects.

Answer: A,C

Question 2

The internal audit department has just completed an investigation into the HR department's procedures relating to new staff appointments The head of HR is unhappy with the draft report prepared by the lead internal auditor The report lists several cases in which appointments were made despite the fact that one or more of the entity's formal procedures were not followed
The head of HR has complained that the internal auditor's comments do not allow for the fact that the HR department's staff members are often very busy and do not always have time to conduct every check.
The internal auditor's comments also reflect a failure to complete documents None of the omissions have led to the appointment of an unsuitable member of staff
Which TWO of the following statements reflect an appropriate response by the board of directors to this report?

A : noring a compliance error altogether may undermine the control environment

B : procedures should be removed if the HR department staff believe that they are unnecessary

C : board should be seen to support the internal audit

D : errors are immaterial because they did not lead to an inappropriate appointment

E : The members of staff responsible for these omissions should be subjected to disciplinary action

Answer: A,C

Question 3

A UK manufacturing company has simultaneously:
* purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65
* sold a call option that grants the option holder the right to buy USD 1million at a price of GBP1.00 = USD1.61(this option has the same maturity date as the put).
Which of the following is a valid explanation for entering into these option positions?

A : company expects to receive USD 1million from a customer and wishes to offset the cost of the put option by the premium on the call option.

B : company expects to pay USD 1million to a supplier and wishes to offset the premium from the call option against the cost of the put option.

C : company expects to receive USD 1million from a customer and wishes to obtain an additional benefit if the USD strengthens beyond GBP 1.00 = USD 1.61.

D : company expects to pay USD 1million to a supplier and wishes to obtain additional protection against the USD strengthening beyond GBP 1.00 = USD 1.65.

Answer: A

Question 4

You are theManagementAccountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc.
You discover that a trainee employee, who is responsible for cleaning out the delivery vans has been taking damaged goods and packets which have reached their sales expiry date and has been selling them to friends. These products would otherwise have been discarded as waste.
The trainee in question is the nephew of one of the senior managers.
What is the correct course of action?

A : ve a quiet word with the trainee and ask him to stop.

B : ve a quiet word with the senior manager, the trainee's relative and askthem to deal with it.

C : cument the facts and escalate to the trainee's manager.

D : nothing, the product was designated as waste anyway.

Answer: C

Question 5

You have been assigned the role of lead internal auditor. Your task is to carryout the annual assessment of the production line maintenance department.
When planning for this audit, which of the following must be completed?

A : epare the report.

B : tablish whether the controls are adequate or not.

C : cide how the controls will be tested.

D : arn all about the systems and controls in the department.

E : refully consider any control weaknesses that are reported.

F : view previous audit findings for the department.

Answer: A,C,D

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Total 276 Questions | Updated On: Mar 13, 2026

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