CIMA CIMA-P3
56 cards covering key terms, models and exam language.
| State of the world | P of that state occurring | NPV of project $000 |
| I | 0.7 | 10,000 |
| II | 0.3 | 7,000 |
| State of the world | P of that state occurring | NPV of project $000 | P x NPV $000 |
| I | 0.7 | 10,000 | 7,000 |
| II | 0.3 | 7,000 | 2,100 |
| Expected value | 9,100 |
| Internal audit | External audit | |
| Reports to | ||
| Appointed by | ||
| Power from | ||
| Employed by | ||
| Coverage | ||
| Responsibility for improving the organisation |
| Internal audit | External audit | |
| Reports to | Management – must have a clear route to the board though day-to-day reporting to the audit committee. | Shareholders |
| Appointed by | Management | Shareholders |
| Power from | Management | Statute – allows external auditors to insist on seeing all documents and to be given full explanations. |
| Employed by | Company (unless outsourced) | External firm |
| Coverage | All categories of risk and investigation | Financial statements: true and fair view |
| Responsibility for improving the organisation | A major function of internal audit | Will report to management on internal control weaknesses |
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