Read the Case Study below and answer ALL of the questions that follow.

Case Study: The Expansion Challenges of XYZ Corporation

XYZ Corporation, once a small startup, has grown into a leading e$-$commerce platform in the urban areas over the past five years. Capitalizing on their success, they recently embarked on an ambitious project: expanding their operations to cater to remote and underserved regions. This expansion was not just about increasing sales; it was a part of their mission to make e$-$commerce accessible to all.

However, with this expansion came new challenges. The remote areas had unreliable internet connections, different consumer behaviors, and logistical nightmares due to difficult terrains. Moreover, there were local competitors who understood the terrain and the people better. The management, while enthusiastic about the expansion, was also wary ofthe potential risks, especially in terms of internal controls, fraud, mismanagement, and the overall audit process.

To ensure that they were on the right track, the board decided to hire 'TechGuard Auditors', a renowned IT auditing firm, to assess their internal controls and audit processes. TechGuard's reputation was impeccable, and they had a history ofhandling complex audits for multinational corporations.

QUESTION $1$

$[15$ MARKS$]$

a$)$ Given the unique challenges of $xYZ$ Corporation's expansion, explain the fundamental concepts of internal control and why they are particularly crucial in this scenario.

$(5)$

Present your answer in the following format:

$\backslash$table$[[$Concept$,$Explanation,Application$]]$

b$)$ With the rapid expansion and the introduction of new teams in remote areas, discuss the possible limitations and challenges of implementing internal control system:s:

$(5)$

c$)$ Describe the logical sequence of the audit process that 'TechGuard Auditors' should follow while assessing XYZ Corporation. Highlight the importance of each stage in the context of XYZ$\text{'}$s unique expansion challenges.

$(4)$

Communication & Presentation mark $-$ for logical and clear arguments that illustrate the candidate's ability to APPLY the theory to the practical

$(1)$

situation in this case study.