CIMA Risk Management P3 Question # 79 Topic 8 Discussion

CIMA Risk Management P3 Question # 79 Topic 8 Discussion

P3 Exam Topic 8 Question 79 Discussion:
Question #: 79
Topic #: 8

GUJ A small but rapidly expanding company has recently opened several branches in locations far away from the Head Office. All of the branches are relatively small with no one branch accounting for more than 5% of turnover. Management has decided that the company is not yet large enough to install an Internal Audit function but is, nonetheless, concerned about maintaining adequate control and monitoring at the branches whilst allowing Branch Managers the opportunity to react to local circumstances as appropriate.

Which of the following measures would assist Head Office management in maintaining appropriate monitoring and control at the branches?


A.

Restricting the autonomy of individual Branch Managers to purely routine matters and instructing them to refer everything else to Head Office.


B.

Dealing with all Human Resource, recruitment, and similar issues directly from Head Office.


C.

Arranging visits by senior management to each branch periodically.


D.

Instituting the use of a formalised budgetary control system at head office for all branches.


E.

Establishing an open communication policy for employees at branches to allow them to contact Head Office on any matter that concerns them.


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