Question 2 (11 marks) The following are data available for Powerful Tools Ltd for the month of January: Required : a. Calculate (i) cost of goods sold and (ii) ending inventory under the following cost flow assumptions: (1) Weighted average (2) FIFO (3) LIFO (9 marks) b. Calculate the gross profit using the FIFO method. (2 marks) [Total marks for Question 2: 11 marks] Question 3 (10 marks) An auditor made the following statement about cash in a forum to his clients : "Cash can be a risky asset to a company, and an effective internal control system should be properly implemented in the cash cycle of a company: " Required: a. Discuss with TWO reasons why cash can be a risky asset to a company. (2 marks) b. Describe THREE objectives for implementing an effective internal control system in a company. (3 marks) c. Provide FIVE effective internal control measures or policies for the cash cycle of a company. (5 marks) [Total marks for Question 3: 10 marks]