Finding time to prepare for the CIMA Risk Management exam is hard when work already fills your week. Fast2test packs 287 focused practice questions for the P3 exam into formats you can study in short bursts, so every spare half hour moves you closer to a pass.

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CIMA Risk Management Sample Questions:

Question 1

V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.

Question 2

The interest rate on EUR deposits is 7%. The interest rate on GBP deposits is 5%. The spot rate is EUR/GBP0.8500. What is the one year forward rate predicted to be assuming interest rate parity holds true?

A. 0.9633
B. 0.8662
C. 0.7500
D. 0.8341

Question 3

The safety guard on a piece of equipment was broken. The factory manager suspended an operator who refused to operate the equipment until it was repaired. The factory manager paid another operator a bonus for operating the damaged equipment until the safety guard could be repaired.
What does this incident say about the control environment within that factory?

A. Management has a proportionate and considered attitude towards risk.
B. Employees are motivated to maintain productivity.
C. Employees will perceive that management does not care about health and safety risks.
D. This factory's safety record is likely to be poor.
E. Management is not particularly concerned with managing risks.

Question 4

JKL is a retailer with more than 45 shops around the country. The directors suspect that a serious fraud has occurred at one of the branches and a team of internal auditors has been sent to investigate An analytical review investigation shows that sales revenue is in line with budget, but overtime payments to shop staff exceed budget by 20%.
How should the internal audit team proceed?

A. Increase the evaluation of inherent risk
B. Conduct additional detailed testing on overtime payments
C. Conduct additional detailed testing of all figures.
D. Increase the evaluation of control risk

Question 5

Which of the following actions would breach CIMA's Code of Ethics for Professional Accountants?

A. An accountant has been asked to identify the two least profitable factories so that they can be closed down, with the loss of all jobs. All of the company's factories are located in areas of high unemployment.
B. An accountant has been asked to compile a list of all contacts at the company's bank so that they can be included in the mailing list for the calendar and coffee mug that are distributed as business gifts by the company in December of every year.
C. An accountant has been asked to evaluate an investment opportunity that is open for a very short time.
The accountant has recommended rejecting the opportunity without doing any evaluation because he was too busy to study the proposal properly.
D. An accountant has been asked to select a new supplier and has decided to recommend a supplier based in country A because that will give the accountant an excuse to visit a family member who lives there.
E. An accountant has been asked to confirm that a complex financial instrument that has been recommended by the bank is suitable for the company. The accountant does not understand the instrument, but has confirmed its suitability because senior management wishes to use it.

Solutions: