CIMAPRA19-P03-1 Exam - Topic 4 Question 52 Discussion

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

Question #: 52
Topic #: 4

T is an accountant who has been accused of professional incompetence T agreed to advise a client on currency management and the client lost a great deal of money when a large foreign currency trade receivable declined in value without having been hedged.

Which of the following factors strengthens the case that T has been incompetent?

Select ALL that apply

AT had been too busy to stay up to date with continuing professional development requirements

BSince the loss the client's chief executive has spoken to her business contacts m the industry and all had hedged against a decline in this currency

CT had studied all relevant economic forecasts and had concluded that it would be too expensive to hedge this receivable

DT had offered the client two alternatives showing the costs and benefits of hedging the position, but did not strongly recommend either alternative

ET had never offered advice on foreign currency management before

Show Suggested Answer

Suggested Answer: B, C, D

by Angelo at Aug 05, 2024, 08:00 PM

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Pearline

6 months ago

E is surprising, how did T even take this on?

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Alysa

6 months ago

D is questionable, should've pushed for a recommendation.

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Rosendo

6 months ago

C makes sense, but was it really too expensive?

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Antione

7 months ago

B is a big deal, everyone else hedged!

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Ashanti

7 months ago

A seems pretty solid, being too busy isn't an excuse.

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Delfina

7 months ago

D seems important too; if T didn’t strongly recommend hedging, it might show a lack of responsibility in guiding the client.

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Alysa

7 months ago

I think C could actually weaken the case since T did analyze the costs, but I’m not entirely confident about that.

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Carey

8 months ago

I’m not sure about B, but it seems like if everyone else hedged, it could imply T was negligent in not advising the client to do the same.

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Jutta

8 months ago

I remember discussing how staying updated with professional development is crucial for accountants, so A might strengthen the case against T.

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Carin

8 months ago

This is a good question to test our understanding of professional competence standards. I feel confident I can identify the factors that would support the case against the accountant. I'll methodically go through each option and select the ones that are most damaging to T's defense.

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Tamekia

8 months ago

Hmm, this is a tricky one. There are a lot of details to consider here. I'm not entirely sure which factors would be the strongest evidence of incompetence. I'll have to think this through carefully.

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Lavonne

8 months ago

This question seems straightforward - we just need to identify the factors that would strengthen the case that the accountant T was incompetent. I'll carefully review each option and select the ones that seem most relevant.

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Tiffiny

8 months ago

Okay, let's see. The key seems to be identifying the actions or inactions by the accountant that contributed to the client's significant financial loss. I'll focus on finding the options that most clearly demonstrate T's failure to properly advise the client.

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Providencia

8 months ago

Hmm, I'm a bit unsure about this one. I know we can use the switch_to class to interact with dropdown elements, but I'm not sure if that's the best approach here. Maybe I should review the WebDriver documentation again.

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Verda

1 year ago

I'm just gonna throw this out there - maybe T was too busy playing Fortnite to worry about that pesky 'continuing professional development' stuff. Jokes aside, B and D are the real killers here. Sounds like T needs to brush up on their currency management skills. Or maybe just stick to balancing the books.

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Shizue

11 months ago

D) T had offered the client two alternatives showing the costs and benefits of hedging the position, but did not strongly recommend either alternative

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Salome

12 months ago

B) Since the loss the client's chief executive has spoken to her business contacts in the industry and all had hedged against a decline in this currency

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Veda

12 months ago

A) T had been too busy to stay up to date with continuing professional development requirements

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Alyce

1 year ago

Hmm, I'm not so sure about C. If T had done their due diligence and determined hedging was too expensive, that could be a valid defense. But B and D definitely make T look incompetent. Reminds me of the old saying, 'An ounce of prevention is worth a pound of currency losses.'

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Willow

12 months ago

E) T had never offered advice on foreign currency management before

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Rosendo

1 year ago

C) T had studied all relevant economic forecasts and had concluded that it would be too expensive to hedge this receivable

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Judy

1 year ago

A) T had been too busy to stay up to date with continuing professional development requirements

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Daron

1 year ago

I agree, B and D are the key factors here. Not staying up to date with CPD requirements (A) is bad, but the real nail in the coffin is the client's competitors successfully hedging. T really dropped the ball on this one.

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Karrie

1 year ago

D) T had offered the client two alternatives showing the costs and benefits of hedging the position, but did not strongly recommend either alternative

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Mi

1 year ago

B) Since the loss the client's chief executive has spoken to her business contacts in the industry and all had hedged against a decline in this currency

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Helaine

1 year ago

Wow, this is a tough one. I think options B and D are the biggest red flags here. If the client's competitors all hedged successfully, that really highlights T's incompetence. And not strongly recommending either option? Yikes, that's pretty damning.

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