Table 13.2 (page 591) identifies two risks typically encountered when preparing a budget.

Required

(a) Analyse the degree of exposure to each of these risks for the prepare budgets process at AB HI-FI.

(b) Determine how many of the common controls described in table 13.2 are present in the prepare budgets process at AB Hi-Fi.

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

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