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P3 - Risk Management

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P3 Questions and Answers

Question # 1

Move the category of risk to the box beside the risk description it best matches.

Question # 2

YUI owns 18 factories, which are spread around the country. Each factory employs 500-700 production staff and has its own administrative and accounts departments.

It has recently been discovered that the manager in charge of YUI's Hightown factory has been overstating his personal expenses claims for the past five years. The total amount stolen in this manner has been estimated at $10,000.

Why would it have been relatively difficult to have prevented this fraud?


Senior members of management can often override controls.


It is impossible for anybody to check expenses claims submitted by a senior manager.


Managers are generally highly intelligent and are generally capable of designing ways to defeat control systems.


Internal controls cannot address fraud, only error.

Question # 3

A US company has to pay £500,000 for a new machine.

You have the following information on currencies.

EUR 1 = £1.2300

EUR 1 = USD 1.6200

What is the cost of the machine in USD?

Give your answer to the nearest $.

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