Cima P3 - Test Builder/mock Exams

What are the sections in the AICPA framework? {Ans: Management description Management assertion Practitioners opinion}How to manage reputation risk? {Ans: Improved employee relations Employing risk professionals Employing risk sensing tools}What must be included in risk assessment? {Ans: - potential fraud must be considered - internal control systems must be reviewed for changes in external environment}What are some factors which influence the success of disruption? {Ans: Simplicity Resources Cost Accessibility Quality}Which risk will computerised systems impact? {Ans: Inherent risk Audit risk}What is risk based auditing? {Ans: Auditors use judgement to decide which areas to spend most time on, so spend less time on areas that are relatively safe}What would be an appropriate pay structure for an executive director? {Ans: Fixed salary with an additional bonus relating to a range of performance measures including profit}What is inherent risk? {Ans: The risk that an amount on the financial statement might be stated as materially incorrect}Explain board leadership and company purpose {Ans: Guidance on promoting long term sustainable success of company and contributing to wider society}Who should attend AGM? {Ans: Chairman Directors CEO chairperson of audit, remuneration and nomination committee}What are some forms of