Free CIMA CIMAPRA19-P03-1 Exam Dumps Questions & Answers

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.  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.
• B.  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.
• C.  Phased changeover is the safest and slowest method of changeover.
• 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.  Phased changeover moves individual portions of the business to the new system one at a time.
• F.  Pilot changeover moves the simplest part of the business to the new system first.

CW is a large company in the food production industry. It has grown over the years by the acquisition of several smaller rivals CW has ten branches located in its home country and has just opened a foreign branch for the first time It has recently made some changes to the structure and implementation of its control system.
Which TWO of the following changes would be most likely to improve the overall control system?

• A.  Excess funds are now invested, by the finance director, in short-term securities The finance director initiates buy and sell transactions and she also receives and retains all correspondence relating to the investments
• B.  CW has just opened a bank account in the currency in which the newly opened branch is now operating
• C.  Establishing an internal audit department
• D.  A policy has been initiated to complete a physical inventory of all non-current assets at least annually This is then reconciled with the non-current asset register
• E.  Purchase invoices are now approved for payment at branches and a list of approved invoices are sent to head office for payment The invoices, supporting documentation and suppliers' statements are retained at the branches

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, which would 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.  Internal audit will have a better understanding of D plc's objectives and culture.
• B.  Specialist skills may be more readily available.
• C.  Decisions relating to internal audit can be based solely on cost.
• D.  Risk of staff turnover is passed to the outsource company.
• E.  Doing so may improve independence.

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.

Correct Answer:

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?

• A.  -$5million
• B.  $1million
• C.  -$0.2million
• D.  $4.8million