Question 7 [25 marks] a) Internal controls are key to success of every entity. In line with this, risk managers of entities have to identify and assess the risks of material misstatement through understanding the entity and its environment. This requires risk managers to obtain an understanding of control activities relevant to the audit and risk management of entity. The issue however is not what constitute control activities. This is because control activities are considered as the policies and procedures which help ensure that management directives are carried out. Required: Discuss five different types of control activities and, for each type, provide an example of control a company may implement. [10 marks] b) You are a risk manager of Cocoa Processing Company located in Tema, Ghana. Your company process only the choicest premium Ghana cocoa beans without any blending. Cocoa Processing Company is probably the only factory in the world which can make such a claim. Through intensive research and product development, CPC turns out products, which meet international quality standards and also consumer satisfaction. An excerpt of the key risk list (the full list consists of 12 key risks) according to the publicly available risk disclosures in your companys annual report published on 31 March 2021 are: Long-term sustainable supply of cocoa, rapidly shifting consumer trends; Business transformation and Legal, regulatory and compliance. Required: As a risk manager of Cocoa Processing Company, you are required to briefly describe these key risks and propose risk mitigation strategies for these key risks. [8 marks] (c) Identify and explain three economic disincentives that would dampen the flow of funds between household savers of funds and corporate users of funds in an economic world without financial institutions. [7 Marks]