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P3 Risk Management (Online)
1.M plc is an IT company that bids for large contracts to sell computer systems and
also to service existing systems. M plc's senior management has always set budgets
which are hard to achieve and have made no allowances for the recession.
The economy has improved and M plc's senior managers have made the budget even
more optimistic. The budgeted sales target has been increased by 40%.
In the past, sales staff have not tried to achieve the budget sales because it was
generally believed that the targets were impossible to reach.
M plc has recently appointed a new Sales Director who has decided that sales staff
will be dismissed if they fail to meet sales targets for three successive months. He is
also looking for higher sales margins than were achieved before.
What are the likely consequences of the new Sales Director's policy?
A. Sales staff will be happier in their jobs.
B. Sales staff will tender for riskier contracts.
C. Sales staff will encroach on other sales staff territories to get more work.
D. Sales staff will look for new jobs.
E. Sales staff will feel more settled and secure in their jobs.
The internal audit department should always give a report at the end of its audit. This
report is intended to be useful and help the company going forward. The report should
always include any recommendations for improvements.
Which of the following statements are true and which are false?
3.SDF is a quoted company.
Which of the following matters should normally be dealt with by SDF's audit
A. The external auditor has requested a higher fee than normal for the forthcoming
financial year because new legislation will require additional audit work.
B. The Head of Internal Audit is concerned that a recent internal audit investigation
may have revealed serious compliance failures.
C. The external auditor is concerned that an accounting policy selected by the