CIMAPRA19-P03-1 Exam - Topic 6 Question 62 Discussion

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

Question #: 62
Topic #: 6

W is a construction company which undertakes large projects for governments and other clients worldwide. Following extensive tendering processes, contracts are issued for successful tenders,and projects typically take three to five years to complete. Contracts are normally fixed-price and many have considerable penalty clauses.

Which of the following would beappropriate policies and controls for W to implement?

AUnsuccessful tenders should be analysedto establish the cause of them failing to be awarded the work and help to avoid future failures.

BEnsuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.

CEnsuring that the minimum legal wage is paid to all workers on the construction sites.

DIn order to ensure the maximum chance of winning the contract,tendersalways commit W to completing the work at the lowest possible price and in the shortest possible time.

EContract terms should be worded precisely so that additional work is not deemed to form part of the contract.

FThe project steering committee and project board should receive regular project status reports.

Show Suggested Answer

Suggested Answer: B, C, E

by Olga at Dec 09, 2024, 04:20 PM

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Karan

2 months ago

Precise contract wording is key to avoid extra costs!

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Xochitl

2 months ago

Totally agree, separation of duties is crucial.

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Asha

2 months ago

Analyzing unsuccessful tenders is a must!

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Eloisa

3 months ago

Wait, are we really committing to the lowest price? Sounds risky!

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Laine

3 months ago

Paying minimum wage is just basic ethics, right?

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Izetta

3 months ago

I feel like option D might not be the best approach. Committing to the lowest price could lead to financial issues later on, especially with fixed-price contracts.

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Pearlie

3 months ago

Option E stands out to me because I recall a practice question about contract wording. Precise terms could really help avoid disputes over additional work.

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Jaime

4 months ago

I'm not entirely sure, but I think separating duties in tender preparation and project planning, as mentioned in option B, is crucial for avoiding conflicts of interest.

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Annmarie

4 months ago

I remember studying the importance of analyzing unsuccessful tenders, so option A seems like a good policy to implement. It could help improve future bids.

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Abel

4 months ago

I think I've got a handle on this. The key is identifying policies and controls that will help W manage the risks associated with their long-term, fixed-price projects. Choices A, B, and F look like they could be effective in addressing those challenges. I'll make sure to explain my reasoning carefully.

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Melina

4 months ago

This is a tricky one. I feel like I'm missing some key information to really nail down the best answers. Maybe I should focus on the core principles of good internal controls, like segregation of duties and oversight. But I'm not 100% confident in my approach here.

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Leota

4 months ago

Okay, I've got a strategy here. I'm going to look for policies and controls that address the risks mentioned, like unsuccessful tenders, separation of duties, and managing project timelines and costs. Choices B, E, and F seem like they could be good options.

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Samira

5 months ago

Hmm, I'm a bit unsure about this one. There are a lot of options to choose from, and I'm not totally sure which ones would be the most appropriate. I'll need to carefully read through each choice and think about how they relate to the specific challenges faced by W.

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Corinne

5 months ago

This question seems straightforward - it's asking about appropriate policies and controls for a construction company like W. I think the key is to focus on the issues mentioned in the scenario, like the long project timelines, fixed-price contracts, and penalty clauses.

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Glen

9 months ago

I hope the project steering committee has snacks during those status meetings. Gotta keep the team's energy up for all those construction projects!

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Nadine

9 months ago

Regular project status updates are essential for effective oversight. Option F is a practical way to keep the leadership informed and on top of things.

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Delila

9 months ago

Good point. Precise contract wording is important to avoid ambiguity and disputes. Option E is a smart way to protect the company's interests.

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Precious

8 months ago

F) The project steering committee and project board should receive regular project status reports.

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Alyce

8 months ago

E) Contract terms should be worded precisely so that additional work is not deemed to form part of the contract.

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Iluminada

8 months ago

B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.

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Justine

9 months ago

A) Unsuccessful tenders should be analysed to establish the cause of them failing to be awarded the work and help to avoid future failures.

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Cheryl

9 months ago

Hmm, Option D seems a bit risky. Committing to the absolute lowest price and shortest time might jeopardize quality and lead to penalties. I'd be cautious with that one.

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Dong

8 months ago

E) Contract terms should be worded precisely so that additional work is not deemed to form part of the contract.

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Matilda

8 months ago

B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.

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Yuonne

9 months ago

A) Unsuccessful tenders should be analysed to establish the cause of them failing to be awarded the work and help to avoid future failures.

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Art

10 months ago

Paying at least the legal minimum wage is a must. Option C is a no-brainer to ensure compliance and treat workers fairly.

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Gertude

8 months ago

F) The project steering committee and project board should receive regular project status reports.

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Minna

8 months ago

C) Ensuring that the minimum legal wage is paid to all workers on the construction sites.

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Shanda

9 months ago

B) Ensuring a consistent separation of duties between those involved in the preparation of tenders and those involved in the planning of projects.

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Art

10 months ago

A) Unsuccessful tenders should be analysed to establish the cause of them failing to be awarded the work and help to avoid future failures.

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Bettina

10 months ago

Absolutely, separation of duties is crucial to ensure proper checks and balances. Option B is a solid choice for maintaining control and accountability.

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