CIMA Exam CIMAPRA19-P03-1 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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15 days ago

I think factors A and B strengthen the case against T.

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