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CIMA Exam CIMAPRA19-P03-1 Topic 1 Question 60 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 60
Topic #: 1
[All CIMAPRA19-P03-1 Questions]

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

TheOfficeManagerhas 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?

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Suggested Answer: A, B, C

by Lonna at Oct 18, 2024, 05:12 PM

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Asuncion
2 days ago
I feel like if the owner, Rio, isn't fully on board with the internal controls, then they might not be effective. That seems really important.
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Vince
8 days ago
I'm not sure if all employees would follow the internal controls. I think we talked about how compliance can be a challenge in practice.
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Izetta
13 days ago
I remember discussing how internal controls can be beneficial, but they also have limitations, especially in smaller businesses like Rio's.
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Theola
18 days ago
This is a good question. I think the key is recognizing that even though Rio's business is relatively small, internal controls can still have limitations in terms of employee buy-in and potential impacts on operations. I'll make sure to cover those angles in my answer.
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Chauncey
23 days ago
Okay, I've got some ideas here. The main limitations I see are that employees could ignore the controls if management doesn't fully support them, and the controls could slow down the architects' responsiveness. I'll make sure to explain those points clearly.
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Antonio
28 days ago
Hmm, I'm a bit unsure about this one. I know internal controls are important, but I'm not sure I fully understand how they might be limited in a smaller business like this. I'll need to think it through carefully.
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Skye
1 month ago
This seems like a straightforward question about the limitations of internal controls in a small business. I'll focus on the key points like employee compliance, management support, and potential impact on efficiency.
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Paz
6 months ago
Option D makes sense too. Architects are all about creativity and speed. Internal controls could really slow them down and frustrate the whole team.
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Ryann
5 months ago
D) Internal controls may slow down the speed with which the architects can respond to enquiries.
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Lamar
5 months ago
B) Employees could ignore the internal controls.
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Emile
6 months ago
A) Internal controls are only suitable for large businesses.
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Jaime
6 months ago
Haha, Option E is a classic. Internal controls always mean more bureaucracy and red tape. Rio's architects will be pulling their hair out if he hires a whole team of control freaks!
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Viola
7 months ago
I think Option C is also a good answer. If Rio doesn't support the controls, his employees won't take them seriously, and the whole system will fall apart.
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Keneth
5 months ago
User: I think Option C is also a good answer. If Rio doesn't support the controls, his employees won't take them seriously, and the whole system will fall apart.
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Gerald
5 months ago
C) If Rio does not support the internal control system then the controls may not be adhered to.
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Frankie
6 months ago
B) Employees could ignore the internal controls.
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Luis
6 months ago
A) Internal controls are only suitable for large businesses.
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Marvel
7 months ago
Option B is the correct answer. Employees can easily ignore internal controls if they don't see the value in them. Rio needs to get buy-in from his team for the controls to be effective.
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Pete
7 months ago
That's true, but if Rio doesn't support the controls, they may not be effective anyway.
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Dortha
7 months ago
But without internal controls, employees could ignore important procedures.
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Glendora
7 months ago
I think internal controls may slow down the architects' response time.
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