CQC7001 Section B: You are required to answer only ONE (1) question. Choose either Question 3 or Question 4. Question 3 Your friend, Mr Tim, is a manager of Serenity Bookstore. He knows that you have some knowledge on financial accounting and reporting. He has asked for your advice regarding the inventory costing methods and the internal control system. According to Mr Tim, while there are several inventory costing methods, the company adopts the weighted average method. At present, the company does not have any proper internal control procedure. Required: a) Explain the effects on the company's financial statements when using the different inventory costing methods. (6 marks) b) Explain the importance of internal control system to the company. (4 marks) c) Suggest five (5) internal control systems that should be implemented by the company. Give an example for each point. (10 marks) (Total: 20 marks) 4/6