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CIMA Exam CIMAPRO19-P03-1 Topic 7 Question 74 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 74
Topic #: 7
[All CIMAPRO19-P03-1 Questions]

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?

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Suggested Answer: B, D

by Dierdre at Aug 03, 2024, 06:08 AM

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Ernie
3 months ago
You know what they say, 'cash is king.' Investing excess funds in short-term securities is a bit risky if the finance director is the only one handling it.
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Lashawna
3 months ago
Ha! I bet the finance director is having a field day with those investment transactions. Talk about a recipe for disaster!
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Albert
3 months ago
B
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Theron
3 months ago
C
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Laurena
4 months ago
The policy to complete a physical inventory of all non-current assets annually is a good idea too. It will help keep track of the company's assets and ensure they are properly accounted for.
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Pamella
2 months ago
E) 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
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Charlesetta
2 months ago
C) 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
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Ressie
3 months ago
B) Establishing an internal audit department
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Elizabeth
3 months ago
A) CW has just opened a bank account in the currency in which the newly opened branch is now operating
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Emerson
4 months ago
I agree, an internal audit department is a must. It can also help uncover any fraudulent activities within the company.
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Ceola
4 months ago
User 2
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Ernest
4 months ago
User 1
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Lucia
4 months ago
I believe completing a physical inventory of non-current assets annually would also be beneficial. It would help in detecting any discrepancies and ensure accuracy in the asset register.
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Gilma
4 months ago
Establishing an internal audit department seems like the most obvious choice. It will help ensure the control system is functioning properly and identify any potential issues.
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Lashawn
3 months ago
A: That's a good point, it would provide more oversight on the company's finances.
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Carissa
3 months ago
B: I think investing excess funds in short-term securities could also help improve control.
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Tarra
4 months ago
A: I agree, having an internal audit department would definitely improve the control system.
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Emmett
4 months ago
I agree with you, Glory. Having an internal audit department would provide independent oversight and ensure compliance with policies and procedures.
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Glory
5 months ago
I think establishing an internal audit department would definitely improve the control system.
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