CIMA Updated P3 Exam Questions and Answers by anton

Doing so may improve independence.

Decisions relating to internal audit can be based solely on cost.

Internal audit will have a better understanding of D plc's objectives and culture.

Specialist skills may be more readily available.

Risk of staff turnover is passed to the outsource company.

There could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens

Budget changes could have an impact on the funding available to college and university libraries

The terms offered by media companies for film rights for books could change

The quality of output from printing presses might improve

Environmental concerns could lead to a decrease in the availability of trees to make paper

HJK's entire staff should be informed of the investigation and of the disappointing fact that six members of staff handed over their logins and passwords

The investigation should be repeated in the future on a different sample of staff, using other reasons for asking for logins and passwords

HJK's response should be limited to briefing the six staff members on their error and ensuring that they change their passwords.

It was acceptable for the staff to surrender their details because the request had actually been made by members of HJK's IT Security Department.

It was unethical for HJK's IT Security Department to contact staff in this manner, lying about the suspected presence of a virus in order to provoke a response.

Policy 2 is the more risky.

Policy 1 will always be the more expensive in any given period.

Policy 2 is the more likely to cost more than $500,000 in any given year.

Policy 2 has the greater potential upside risk.

Policy 2 is clearly the better policy.