Free CIMA CIMAPRO19-P03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-P03-1-ENG exam questions and correct answers

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Total 278 Questions | Updated On: Jun 06, 2025

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Question 1

B, a construction company, has a policy of carrying out a post completion audit on every construction project undertaken where the value exceeds $1 million.

What is the role of the post completion audit?

A : reward staff and celebrate success.

B : signify the end of the project.

C : highlight what can be done to improve similar future projects.

D : apportion blame for things not done well.

Answer: C

Question 2

RFG is considering a major expansion that will result in a more diversified business model.

At present, RFG's market capitalisation is $240 million. This is based on a beta of 1.6. The risk free rate is 4% and the market rate of return is 9%. RFG is financed entirely by equity. The company generates an annual cash surplus of $28.8 million.

The expansion will cost $50 million and will generate future cash flows of $12 million in perpetuity. This new business will reduce RFG's beta to 1.4.

Calculate the adjusted present value of the expansion.

A : $81 million

B : $131 million

C : $321 million

D : $59 million

Answer: A

Question 3

An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.

Which of the following best explains the relevance of quantifying the risk in that way?

A : ere is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

B : probability is so low as to be ignored.

C : directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

D : calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Answer: A

Question 4

With regard to the rote of the audit committee which of the following statements are correct? Select ALL that apply

A : audit committee should design the system of internal controls

B : audit committee should decide annually whether it needs an internal audit function

C : audit committee should decide annually whether it needs an external audit function

D : audit committee should review and monitor the effectiveness of the company's internal audit function

E : audit committee should provide arrangements for whistle blowing

F : audit committee should engage consultants to carry out business reviews

Answer: A,D

Question 5

WhichTHREEof the following are principles of good corporate governance according to the UK Corporate Governance Code?

A : adership

B : liability

C : muneration

D : nesty

E : countability

Answer: A,C

Page: 1 / 56

Total 278 Questions | Updated On: Jun 06, 2025

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