CIMA Exam Practice Kit: Risk and Control Strategy

front cover......Page 1
copyright......Page 5
table of contents......Page 6
front matter......Page 8
Introduction......Page 10
B Aims of the syllabus......Page 12
D Learning outcomes......Page 13
Paper P3 - Management Accounting Risk and Control Strategy......Page 16
B - Risk and internal control - 20%......Page 17
C - Review and audit of control system - 15%......Page 18
D - Management of financial risk - 30%......Page 19
E - Risk and control in information - 20%......Page 20
Reports and memorandum......Page 22
Environmental change......Page 24
Organisational control......Page 25
Corrective action......Page 26
Theories of management control......Page 27
Typologies of management control......Page 29
Organisational structure......Page 30
Responsibility centres......Page 31
Mechanisms for management control......Page 34
Alternative perspectives......Page 35
Theoretical frameworks......Page 36
Accounting controls......Page 40
New manufacturing methods and the management accounting response......Page 43
Emerging management accounting techniques......Page 44
Lean management accounting......Page 46
Consequences of accounting control and dysfunctional behaviour......Page 47
Questions 1......Page 49
Answers 1......Page 51
Governance, risk management and internal control......Page 58
Corporate governance......Page 59
Principles of corporate governance......Page 60
Board effectiveness......Page 62
Audit committees and the Combined Code......Page 63
Smith Guidance......Page 64
Role of audit committee......Page 65
Reviewing the effectiveness of internal control......Page 67
Enterprise governance......Page 68
Types of risk......Page 70
International risk......Page 71
Threat, uncertainty and opportunity......Page 72
Drivers of value and risk......Page 73
Risk and organisational culture......Page 74
Implications for risk management......Page 75
Risk management......Page 76
Risk architecture......Page 79
Risk management roles and responsibilities......Page 81
Risk management process......Page 82
Residual risk reporting......Page 86
Internal control system......Page 88
Internal control and the Combined Code......Page 89
Role of the board in relation to internal control......Page 90
Classification of controls......Page 91
The changing role of management accountants......Page 93
Accounting controls......Page 94
Cost-benefit of internal control......Page 97
Audit......Page 98
Analytic review......Page 105
Audit working papers......Page 108
Ethics of internal audit......Page 109
The effectiveness of internal audit......Page 110
Questions 2......Page 112
Answers 2......Page 114
Information strategies......Page 128
Linking information strategies......Page 129
Methods of data collection......Page 130
Types of IS......Page 131
Information and the Web......Page 133
IS outsourcing and facilities management......Page 134
IS development......Page 135
Systems development controls......Page 136
Systems development auditing......Page 137
IT structure and support services......Page 138
Information Technology Infrastructure Library......Page 139
Information security......Page 142
Internal controls in an IT environment......Page 143
Control strategies and classifications......Page 144
General controls......Page 145
Application controls......Page 146
Network controls......Page 147
Internal controls for computer systems......Page 149
Computer-assisted audit techniques......Page 150
Control self-assessment......Page 151
Auditing systems maintenance......Page 152
Fraud......Page 154
Indicators of fraud risk......Page 155
Fraud risk management strategy......Page 156
Fraud using computer systems......Page 158
Other types of fraud......Page 159
Questions 3......Page 160
Answers 3......Page 161
The treasury function......Page 170
Overview of financial risk management......Page 172
Introduction to derivatives......Page 176
Sources of interest rate risk......Page 180
Internal hedging techniques......Page 181
Derivatives (external) hedging techniques......Page 182
The foreign exchange market......Page 186
Theoretical forex relationships......Page 187
Risk......Page 191
Internal hedging techniques......Page 194
External hedging techniques......Page 196
Selecting a hedging method......Page 197
Cross-currency hedging......Page 198
Questions 4......Page 199
Answers 4......Page 200
Scenario 1......Page 208
Scenario 2......Page 216
Scenario 3......Page 224
Pilot Paper......Page 268
Solutions to Pilot Paper......Page 279