CIMA Exam CIMAPRA19-P03-1 Topic 1 Question 60 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 60
Topic #: 1

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

TheOfficeManagerhas just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.

What are the limitations of an internal control system in Rio's business?

AInternal controls are only suitable for large businesses.

BEmployees could ignore the internal controls.

CIf Rio does not support the internal control system then the controls may not be adhered to.

DInternal controls may slow down the speed with which the architects can respond to enquiries.

EInternal controls will usually mean hiring more staff.

Show Suggested Answer

Suggested Answer: A, B, C

by Lonna at Oct 18, 2024, 04:12 PM

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Paz

1 months ago

Option D makes sense too. Architects are all about creativity and speed. Internal controls could really slow them down and frustrate the whole team.

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Lamar

1 days ago

B) Employees could ignore the internal controls.

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Emile

19 days ago

A) Internal controls are only suitable for large businesses.

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Jaime

1 months ago

Haha, Option E is a classic. Internal controls always mean more bureaucracy and red tape. Rio's architects will be pulling their hair out if he hires a whole team of control freaks!

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Viola

1 months ago

I think Option C is also a good answer. If Rio doesn't support the controls, his employees won't take them seriously, and the whole system will fall apart.

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Frankie

8 days ago

B) Employees could ignore the internal controls.

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Luis

21 days ago

A) Internal controls are only suitable for large businesses.

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Marvel

1 months ago

Option B is the correct answer. Employees can easily ignore internal controls if they don't see the value in them. Rio needs to get buy-in from his team for the controls to be effective.

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