Free P3 Sample Questions and 100% Cover Real Exam Questions (Updated 287 Questions)
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NEW QUESTION # 29
P Ltd manufactures and sells electrical goods through retail outlets.
N is P Ltd's Sales Director. He has been recently promoted from a senior sales position with P Ltd. He has been forced to spend the first six months as Sales Director on dealing with an administrative mess left behind by the previous sales director.
You are a Senior Management Accountant at P Ltd. You have worked with N for many years.
N has worked hard and has made many changes that have brought significant benefit to the business.
N has asked you to postpone the recording of some purchase invoices so that he will meet his quarterly targets on profit margin.
What should you do?
- A. Document the situation and present the facts to your manager.
- B. Write up the facts of the issue and put it on your files.
- C. Do nothing, no rules have been broken, tell N that you cannot do as he asks and that he needs to abide by the professional codes.
- D. Collect all the facts, distance yourself from the situation but say nothing.
Answer: C
NEW QUESTION # 30
P Ltd, a manufacturing company, is considering a new capital investment project to set up a new production line. The initial appraisal shows a healthy net present value of $6,465 million at a discount rate of 10% as shown in the table below:
However, management is unsure about the demand for the product which will be produced and has insisted that the future revenues should be reduced to certainity equivalents by taking 70%, 65% and 60% of the years
1,2, and 3 cash inflows respectively.
What should P do?
- A. Re-appraise the project using other capital appraisal techniques to get a more balanced view.
- B. Put pressure on sales and marketing to re-verify their forecasts.
- C. Stop the project, it has considerable risk.
- D. Proceed with the project, it has a healthy net present value.
Answer: A
NEW QUESTION # 31
Which THREE of the following are true with regard to managing the changeover from an old to a new computer system?
- A. Pilot changeover moves the simplest part of the business to the new system first
- B. 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 earned out on both systems
- C. Phased changeover is the safest and slowest method of changeover
- D. Phased changeover moves individual portions of the business to the new system one at a time
- E. 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
- F. 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
Answer: C,D,F
NEW QUESTION # 32
ABC is a large supermarket chain which also has online shopping and home deliveries It has a 24/7 service which runs on a central server allowing all customers to enter new orders at any time This is a business critical service which, if not available, may lead to customers turning to alternative supermarket chains offering similar services, resulting in immediate turnover loss and possible long term customer loss.
ABC is contemplating the implementation of a hot standby facility, not only to cover for emergency disaster recovery, but also to allow for business continuity, allowing necessary maintenance and updates without service interruption.
Which of the following cybersecurity objectives is ABC concerned about in this scenario?
- A. Integrity of processing
- B. Confidentiality
- C. Availability
- D. Integrity of data
Answer: C
NEW QUESTION # 33
M, a manufacturing company, has had some problems with defects in one of the main products it produces.
This product has been made by the company for many years and is very profitable. Last month it had over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability.
Which of the following controls could M introduce to reduce defects and also increase profitability?
- A. M could introduce a procedure where quality control staff sign a form at the end of each day to say they have examined 1 in 10 products for defects and they are satisfied with the quality.
- B. M could check all employees qualifications to ensure they are qualified for their jobs.
- C. M could service machinery at least once a month as recommended by the machinery supplier.
- D. M could increase the number of quality control staff.
- E. The production director could examine one in every 10 products and sign a form to say they are satisfactory.
Answer: A,B,C
NEW QUESTION # 34
M built a large factory last year and it has just been completed. The initial outflows on this project have a present value of $400 million and the entire project has a net present value of $30 million.
The initial phase of the project caused problems and there was an overspend of $35 million as there was unstable soil. The foundations had to be underpinned with large steel bars to ensure the building would be safe. There was no other suitable site for the project.
The construction could not be abandoned as the site would have had very little commercial value.
The Internal Audit department has been asked to carry out a post completion audit. What issues should it concentrate on?
- A. The audit should find out who was to blame for the project being over budget.
- B. The audit should look at documentation to ensure proper procedures were followed at all stages of the project.
- C. The audit should consider whether it should have built the factory without underpinning and sold it on quickly.
- D. The audit should consider what lessons could be learned for future projects.
- E. The audit should consider the initial survey report when the land was purchased to see if the survey mentioned the unstable soil.
Answer: B,D,E
NEW QUESTION # 35
Select the most appropriate level of responsibility for managing each of the following risks.
Answer:
Explanation:
NEW QUESTION # 36
You are the Management Accountant 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. Document the facts and escalate to the trainee's manager.
- B. Do nothing, the product was designated as waste anyway.
- C. Have a quiet word with the senior manager, the trainee's relative and ask them to deal with it.
- D. Have a quiet word with the trainee and ask him to stop.
Answer: A
NEW QUESTION # 37
A firewall in a computer suite is designed to
- A. prevent unauthorised traffic into defined areas of the network
- B. prevent the overloading of the network by unauthorised traffic
- C. prevent viruses from infecting the network
- D. prevent a disaster from occurring by limiting the spread of any fire
Answer: C
NEW QUESTION # 38
Zia is an accountant and wishes to take out a Forward Rate Agreement (FRA) as a hedging instrument. The company treasurer has advised that a short-term interest rate (STIR) future would be better.
Which of the following is true of an STIR?
- A. A STIR is flexible and the position can be closed quickly and easily.
- B. If interest rates have gone down the price of the future will have fallen.
- C. A STIR must be kept for the whole duration of the contract.
- D. A STIR can be tailored to the exact needs of the company.
Answer: A
NEW QUESTION # 39
A hospital is part of a government provided health service which is free to patients. The management of the hospital is concerned with the need to minimise the risks to which the hospital is exposed from patient litigation.
In this context, which TWO of the following are appropriate steps to manage this risk?
- A. Ensure that proper documentation is in place for all patients showing such details as symptoms, treatments, and test results.
- B. Ensuring that a policy is in place to transfer or discharge critically ill patients so as to minimise fatalities in the hospital.
- C. Ensuring that patients undergoing procedures sign documentation to confirm that the risks have been explained to them and that they understand.
- D. The management refuses to allow the hospital to participate in the Major Accident Plan for the city in which it is located. It believes the Plan could expose the hospital to excessive risk.
- E. Allocating a risk score to patients depending on age, general heath and similar consideration and refusing to admit patients whose risk score exceeds a certain threshold.
Answer: A,C
NEW QUESTION # 40
Which of the following are threats to the control environment?
- A. Directors not producing receipts for their expenses.
- B. Directors ignoring unethical practices that increase sales.
- C. Internal auditors not following up on internal control problems.
- D. Allowing staff to follow unwritten policies.
- E. Regularly changing procedures to comply with legislation.
Answer: A,B,C
NEW QUESTION # 41
ZZ is a data security company that is responsible for cyber security m a large shopping mall 21 uses Network Configuration Management (NCM) to assist it in meeting the various needs of the mall's user community.
Which THREE of the following are advantages provided by NCM?
- A. NCM allows ZZ to segregate traffic for different user groups in the mall
- B. NCM allows ZZ to provide different service levels for different user groups in the mall
- C. NCM allows ZZ to prevent data corruption for different user groups in the mall
- D. NCM allows ZZ to stop malware from being spread for different user groups in the mall
- E. NCM allows ZZ to restrict traffic for different user groups in the mall
- F. NCM allows ZZ to prevent scanners being used on the public WiFi for different user groups in the mall
Answer: A,B,F
NEW QUESTION # 42
A small but rapidly expanding company has recently opened several branches in locations far away from the Head Office. All of the branches are relatively small with no one branch accounting for more than 5% of turnover. Management has decided that the company is not yet large enough to install an Internal Audit function but is, nonetheless, concerned about maintaining adequate control and monitoring at the branches whilst allowing Branch Managers the opportunity to react to local circumstances as appropriate.
Which of the following measures would assist Head Office management in maintaining appropriate monitoring and control at the branches?
- A. Establishing an open communication policy for employees at branches to allow them to contact Head Office on any matter that concerns them.
- B. Restricting the autonomy of individual Branch Managers to purely routine matters and instructing them to refer everything else to Head Office.
- C. Arranging visits by senior management to each branch periodically.
- D. Dealing with all Human Resource, recruitment, and similar issues directly from Head Office.
- E. Instituting the use of a formalised budgetary control system at head office for all branches.
Answer: A,C,E
NEW QUESTION # 43
D's Board has been advised by the auditors that D's control environment is weak and should be improved.
Which TWO of the following measures will help to improve the control environment?
- A. The sales managers will encourage the sales team to increase sales by 50% in the next six months.
- B. The Board will meet annually to discuss the report from the external auditors.
- C. The Board will put in place a fraud policy
- D. The directors will have special rules for claiming expenses and will not have to follow the procedures in place for all staff
- E. The Board will appoint an additional accountant in the Finance Department.
Answer: B,C
NEW QUESTION # 44
The Head of IT Security has been asked to conduct a detailed forensic analysis of a suspected data breach that ted to customer credit card details being intercepted.
Which TWO of the following would be suitable objectives for such a forensic analysis?
- A. Preventing the credit card companies from blaming the entity for fraudulent charges
- B. The collection of evidence that can be used to convict the perpetrators of the breach.
- C. Identifying customers whose details have been stolen
- D. Recovering the stolen credit card details before they can be abused by criminals
- E. Developing an understanding of the vulnerabilities that led to the breach
Answer: C,E
NEW QUESTION # 45
NLC, a retail chain, is considering moving its information systems which support its point of sale infrastructure into the cloud.
Which TWO factors should it consider in choosing its supplier?
- A. Robust service level agreement
- B. Certified security
- C. Cheapest option offered
- D. Proximity of facilities to head office
Answer: A,B
NEW QUESTION # 46
The acronym VPN stands for.
- A. Virtual Private Network
- B. Very Personal Network
- C. Verified Private Network
- D. Virtual Personal Network
Answer: A
NEW QUESTION # 47
Jo is a well known entrepreneur who founded JIS. a global producer or high technology equipment JIS has grown rapidly and was listed two years ago JIS's share price has grown steadily since its listing Jo serves as both CEO and Chair A recent newspaper article has suggested that JIS would benefit from having a separate CEO and Chair Which TWO of the following arguments are valid?
- A. If Jo remains as CEO and a new Chair is appointed then Jo should still attend alt meetings between non-executive directors and the Chair.
- B. There should be a division of responsibilities between the CEO running the Board and the Chair running the company's business
- C. Without a Chair to report to, Jo might pressurise the other directors into action that could damage JIS.
- D. Jo's setving as both Chair and CEO gives clarity of leadership and means JIS benefits from Jo's skills and knowledge of the company
- E. If Jo remains as Chair and a new CEO is appointed then Jo will remain responsible for implementing policies to execute the Board's strategy
Answer: B,C
NEW QUESTION # 48
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