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Free CIMA E1 Managing Finance in a Digital World CIMAPRA19-E01-1 Exam Questions

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Question 1

A new Team Leader in Internal Audit has been asking team members about tasks that they do not think are part of their responsibility as they go beyond compliance with legislation. You are preparing a response to this to include an explanation of the requirements of a social audit. Which of the following would you include in your response?

Select ALL that apply.

Correct Answer: A. Observance of equal opportunities beyond that required by legislation; B. Ethical investment decisions; C. Use of sustainable raw materials

Question 2

Which of the following effects on tax is a benefit of the implementation of Corporate Social Responsibility (CSR) strategies?

Correct Answer: A. Reduction in environmental taxes

Question 3

Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.

Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

Correct Answer: A. An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.

Question 4

When testing an information system before it goes live, using contrived testing will present the system with which type of data and transactions?

Correct Answer: A. Unusual and unexpected data and transactions

Question 5

Company Q has several layers of management. The Chief Executive Officer (CEO) wishes to remove some of these layers to streamline the organisation and increase efficiencies. The initial plan is for third party contractors to take over support activities. What change in the organisation is the CEO making?

Correct Answer: A. Outsourcing

Question 6

Which of the following does NOT help to bring about operational improvement in the manufacturing process of an organisation?

Correct Answer: D. Market research

Question 7

A management accountant vacancy has arisen in the Finance Department of HJ Company. The Finance Manager is preparing the necessary paperwork for the recruitment process and is currently working on the person specification.He has contacted thecompany's Human Resource Department to ask for advice on whichTHREEof the following he should include in the person specification:

Correct Answer: B. Attainments; D. Special attributes; E. Background and circumstances

Question 8

Which of the following would work asSupportStaff in Mintzberg's organisational structure?

Correct Answer: A. Press relations staff

Question 9

Human Resource Management (HRM) and Personnel are different.

Which of the following is NOT a characteristic of Human Resource Management (HRM)?

Correct Answer: A. HRM relies on a modern, transactional approach.

Question 10

Which of the followingcan facilitateinnovation within an organisation?

Select ALL that apply.

Correct Answer: A. The communications system; B. The leadership style

Question 11

H works in an organisation that supplies advertising space in prominent areas in inner cities. She frequently works at client premises with limited time spent at the office headquarters. H's colleagues also work in the same manner and the organisation has reduced office space as most employees are not in the office all at the same time. Instead, a bank of work stations are provided for sales staff with telephones and internet connections. Which of the following working arrangements is described above as being provided by the organisation?

Correct Answer: A. Hot desking

Question 12

The following statements are from which section of the UK Combined Code?

1:The board should disclose a balanced and understandable assessment of the company's position and prospects in the financial reports.

2:The board should maintain an appropriate relationship with the company's external auditor.

Correct Answer: A. Accountability

Question 13

Which of the following is NOT a key feature of total quality management (TQM)?

Correct Answer: A. A staff appraisal system is used

Question 14

Which of the following is NOT a feature of a knowledge management system specific to a particular organisation?

Correct Answer: A. The internet

Question 15

Vladimir is the managing director of a IT repair business called Screenhax. The company has been operating for 10 years and has around 60 members of staff.

Donald, one of Vladimir employees, committed the act of 'skimming".

What did Donald do?

Correct Answer: A. Donald repaired a customer's broken computer but did not register the job through the computer system. He then pocketed the cosh.