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CIMA Risk Management Sample Questions (Q133-Q138):

NEW QUESTION # 133
SDF is a quoted company. Which of the following matters should normally be dealt with by SDF's audit committee?

• A. The Finance Director will be retiring within the next year and a replacement will have to be found.
• B. The external auditor has identified a material error, due to a clear miscalculation, in the draft financial statements.
• C. The external auditor has requested a higher fee than normal for the forthcoming financial year because new legislation will require additional audit work.
• D. The external auditor is concerned that an accounting policy selected by the Finance Director does not comply with the spirit of the relevant accounting standard.
• E. The Head of Internal Audit is concerned that a recent internal audit investigation may have revealed serious compliance failures.

Answer: C,D,E
NEW QUESTION # 134
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. To apportion blame for things not done well.
• B. To signify the end of the project.
• C. To reward staff and celebrate success.
• D. To highlight what can be done to improve similar future projects.

Answer: D
NEW QUESTION # 135
VBN uses a balanced scorecard to monitor the performance of its divisions.
Classify each of the following decisions taken by a division's management team as either commercially sound or dysfunctional.
Answer: ** Explanation:


NEW QUESTION # 136**
B uses a balanced scorecard to monitor the performance of its divisions.
Classify each of the following decisions taken by a division's management team as either commercially sound or dysfunctional.
Answer: ** Explanation:


NEW QUESTION # 137**
A government department is conducting a value for money audit on a school.
The school's pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.
Answer: ** Explanation:


NEW QUESTION # 138
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