Page 285 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Exam style questions and answers

17 A, B, C

A: A blame culture means it is unlikely that staff will integrate controls into their
jobs for fear of being blamed if problems are uncovered.

B: See A above.

C: it is unlikely that CEO would lead any effort to redesign systems to embed
controls at HH.

D: Provided the systems were updated as part of the drive to embed the
principles of internal control, this needn’t be a barrier to embedding controls
awareness.

E: Embedding the principles of internal controls in the organisation need not be
expensive and in fact should save money in the longer term since problems can
be avoided. For example, if there had been a greater awareness of the
principles of controls and the cultural norms were that sensitive information is
not left in a car on a laptop, the expensive theft would not have happened.

18 D, E

A: Internal controls can be used to ensure efficient conduct of business in any
area. For example, Mr Ya may request each employee submits a weekly
summary to him of the work they have carried out which he can then check and
authorise.

B: Internal controls may at first slow down the work of the business but as they
become ‘embedded’ in the culture they should not take up additional time.

C: Standard internal controls such as submission of weekly reports will work in
the business.

D: Staff used to working unsupervised may take the introduction of internal
controls as implied criticism.

E: Staff used to carrying out work on their own terms may not be able to adapt
to the idea of complying with controls.

275