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Exam P3 All Questions
Exam P3 All Questions

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CIMA Strategic P3 Question # 9 Topic 1 Discussion

P3 Exam Topic 1 Question 9 Discussion:
Question #: 9
Topic #: 1

X has just set up a small public relations company. The company is growing last and already has eight employees. X"s accountant has said she needs to make sure she has good internal controls.

X disagrees and says that there are very few issues that could cause weaknesses in internal control in her type of business.

Which THREE of the following statements are correct?


A.

internal controls could stop the company getting good new clients as it will slow down the process by having more checks in place


B.

X ill usually be working in the office so there is no risk of any fraud. Therefore, the company does not need internal controls


C.

The employees may feel they are not trusted if more controls are put in place


D.

Employees can try to circumvent internal controls


E.

A small business which has just started up does not need internal controls.


F.

Only manufacturing companies need internal controls


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