CIMA Exam CIMAPRO19-P03-1 Topic 5 Question 37 Discussion

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

Question #: 37
Topic #: 5

Laura is an accounts clerk. She issupposed to sign each invoice as evidence that she has conducted checks against supporting documents.Sometimes Laura signs invoices without making these checks.

Terry is a member of the internal audit team. Terry has been told to conduct compliance tests on whether Laura is checking the invoices properly.

Which of the following would give Terry a false sense of assurance that Laura's checks have been operating?

ATerry examined a sample of invoices to make sure that they had been signed by Laura. All had been signed.

BTerry worked at a spare desk in the accounts department and quietly watched Laura without telling her. She checked every invoice carefully while Terry was present.

CTerry selected a sample of purchase invoices and compared each to the supporting documents that Laura is supposed to review. Every one of Terry's invoices was supported by the related documents.

DTerry asked Laura a series of open-ended questions about the operation of the purchases system. She did not mention anything about detailed checks of invoices against documents.

ETerry reviewed a sample of invoices for purchases of plant and equipment and found that Laura had not signed them. Laura explained that she believed that those were authorised by someone else, although the accounts manual indicates that it was her responsibility.

Show Suggested Answer

Suggested Answer: A, B, D

by Gwenn at Aug 18, 2022, 07:15 PM

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Dominga

1 months ago

Wouldn't it be hilarious if Terry just set up a hidden camera to watch Laura in action? Like some kind of corporate spy thriller. Option B is the surveillance cam option!

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Francesco

1 months ago

I agree with Antonette. Option C is the way to go. Comparing the invoices to the supporting documents is the only way Terry can really test whether Laura is doing her job properly. The other options are just surface-level checks.

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Tarra

5 days ago

I agree, comparing the invoices to the supporting documents is the most thorough way to check.

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Dalene

21 days ago

I think option C is the best choice. It really tests if Laura is doing her job properly.

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Leonora

2 months ago

Haha, imagine if Terry just asked Laura a bunch of questions without actually checking anything. That's like an auditor trying to catch a fraudster by just chatting with them. Option D is a bit of a joke answer.

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Tula

2 months ago

But I think Option E is also an interesting one. If Laura is not signing certain invoices because she thinks someone else is responsible, that's a red flag that the controls aren't working as intended.

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Stephaine

18 days ago

Terry needs to investigate further to understand why Laura is not signing certain invoices. It could indicate a bigger issue.

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Twana

26 days ago

I agree, if Laura is not following the accounts manual, then there could be a breakdown in the control system.

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Edna

1 months ago

Option E is definitely a red flag. Laura should be signing all invoices, regardless of who she thinks is responsible.

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Antonette

2 months ago

Option C seems to be the correct answer here. If Terry just examines the signed invoices or watches Laura while she's checking them, it won't show whether Laura is actually verifying the supporting documents properly.

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Cordell

1 months ago

E) Terry reviewed a sample of invoices for purchases of plant and equipment and found that Laura had not signed them. Laura explained that she believed that those were authorised by someone else, although the accounts manual indicates that it was her responsibility.

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Shawnda

1 months ago

B) Terry worked at a spare desk in the accounts department and quietly watched Laura without telling her. She checked every invoice carefully while Terry was present.

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