Question: Table 9.5 (page 422) identifies three risks typically encountered when billing a sale. Required (a) Analyse the degree of exposure to each of these risks

Table 9.5 (page 422) identifies three risks typically encountered when billing a sale.

Required

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

(b) Determine how many of the common controls described in table 9.5 are present in the billing process at AB Hi-Fi.

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

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

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