CIMAPRO19-P03-1 Exam - Topic 3 Question 10 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 10
Topic #: 3

JKL is a retailer with more than 45 shops around the country. The directors suspect that a serious fraud has occurred at one of the branches and a team of internal auditors has been sent to investigate

An analytical review investigation shows that sales revenue is in line with budget, but overtime payments to shop staff exceed budget by 20%.

How should the internal audit team proceed?

AIncrease the evaluation of control risk

BConduct additional detailed testing on overtime payments

CIncrease the evaluation of inherent risk

DConduct additional detailed testing of all figures.

Show Suggested Answer

Suggested Answer: B

by Kattie at May 10, 2022, 12:17 AM

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Kristin

4 months ago

I’d want to see more details on those overtime claims!

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Arleen

4 months ago

Increasing control risk seems a bit vague, though.

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Brandon

4 months ago

Wait, why are sales fine but overtime is so high? That’s suspicious.

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Jani

4 months ago

I agree, option B makes the most sense here.

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Paz

5 months ago

Sounds like they should definitely look into those overtime payments.

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Paola

5 months ago

Yikes, this is a high-stakes situation. I'm a little unsure - should I give insulin or sugar? I'll need to double-check my first aid knowledge to make the right call here.

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Mammie

5 months ago

I think I've got a good handle on this. Internal metrics are about the TAS system itself, while external metrics are about the impact on the overall system or user experience. I'll go with my best guess.

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