Online Access Free CIMAPRA19-P03-1 Practice Test

The long-term prospects for inflation in the UK and the USA are 2% and 6% per annum respectively.
The GBP/USD spot rate is currently GBP/USD1.71.
Using purchasing power parity theory, what GBP/USD spot rate would you expect to see in three months' time?

• A.GBP/USD1.69
• B.GBP/USD1.73
• C.GBP/USD1.65
• D.GBP/USD1.77

An oil company has entered into a joint venture with a competing oil company to develop a new oil field. The joint venture arrangement is intended to mitigate the risks associated with developing the oil field.
The following disclosure appears in the oil company's risk report:
"Many of our large projects and operations are conducted through joint ventures. These arrangements involve complex risk allocation and indemnification arrangements and we have less control over these activities than we would have if we had full ownership and control. Our partners may have economic or business interests that are opposed to ours, and may exercise the right to block key decisions or actions. We believe the joint arrangement is in our best interest." Which of the following statements are correct?

• A.The shareholders now have more useful information.
• B.The risk report means that the shareholders know exactly how bad the risk is.
• C.If the risk report had not reported the risk the shareholders might not have been aware of the risk.
• D.Now the shareholders know the directors are aware of the risk.
• E.The risk report says nothing useful about the risk.

Which TWO of the following are benefits of carrying out a post-completion audit of capital projects?

• A.A post-completion audit can investigate variances from the budget on completed projects.
• B.A post-completion audit can help management understand what went wrong with a project in order to try and prevent the same problem occurring in the future.
• C.A post-completion audit can help find out where a project went wrong so it can be fixed immediately.
• D.A post-completion audit can help find out who was to blame for a project exceeding the budget.

YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage.
The project was the responsibility of the production department, which is presently managed by G.
When the project was proposed, the production department was managed by H. H is now YGH's Director of Operations.
How should the finding from this post completion audit be interpreted?

• A.H should be held accountable for the overspend on the project.
• B.G should be held accountable for the overspend on the project.
• C.YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.
• D.The production department should not be granted funding for future projects unless there are compelling reasons to proceed.

Passwords are frequently used to control access to computer systems.
Which of the following characteristics should a password have in order to make it effective?

• A.Passwords should be changed on a regular basis.
• B.Passwords should never be shared.
• C.The strength of a password is increased by using upper and lower case and including numerals.
• D.Passwords should contain 20 characters or more.
• E.Passwords should be written down in a secret place.
• F.Passwords should be short words or names that users will easily remember.