Zikhale Bala is the owner of EQIP (PTY) Ltd, a big building equipment manufacturer in Paaiden Island, Cape Town. Mr. Zikhale Bala is concerned about the misuse and theft of the company's assets by his employees. They have been more than three reports and cases of missing company machines and the use of company machines by employees for their personal use in less than two months. Mr. Zikhali Bala’s vision is for his business to operate effectively and efficiently to achieve his goal of financial stability. 

 1. Identify the types of internal control systems over cash for EQIP (PTY) that will help Mr Zikhali Bala mitigate irregularities to achieve his business goal of financial stability. 

2. EQIP (PTY) Ltd is not statutory required to be externally audited. However, it voluntarily opted to be audited to reap the benefits of an external audit. 

2.1. Explain to Zikhali Bala the five advantages of being audited

2.2. Explain to Zikhali Bala the two disadvantages of being audited 

Answer rating: 100% (QA)

SOLUTION 1 Internal control systems over cash that can help EQIP PTY Ltd mitigate irregularities and achieve financial stability include a Segregation of duties This involves separating the tasks of h... View the full answer