Table 12.3 (page 554) identifies two risks typically encountered when calculating the payroll.

Required

(a) Analyse the degree of exposure to each of these risks for the payroll process at AB Hi-Fi.

(b) Determine how many of the common controls described in table 12.3 are present in the payroll process at AB Hi-Fi.

(c) Prepare a short report suitable for senior management to explain how risky you think the payroll process is, and how comprehensive the current internal controls are.

(d) Prepare a recommendation describing any changes you would like to make to the payroll process at AB HI-Fi in order to reduce the level of risk.