You are an internal auditor assigned to a transportation company and are currently auditing the company's...

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You are an internal auditor assigned to a transportation company and are currently auditing the company's risk management and control processes. You expect an amount losses that may be incurred if the risk management and control processes are not implemented properly are as follows: 1. Accounts receivable collection process amounting to RM10 million. 2. The process of purchasing fuel from local oil companies amounting to RM21 million. 3. The process of selling used trucks by auction of RM3 million. 4. The process of ordering advertisements in the media RM2.5 million. Once an assessment has been made of the company's risk assessment process, the auditor estimates the probability for each of these processes to incur a loss is as follows: 1. Account receivable collection process - low. 2. The process of purchasing fuel from local oil companies - high. 3. The process of selling used trucks by auction high. 4. The process of booking advertisements in the media RM2.5 million - low. Be required: a) Discuss your responsibilities as an internal auditor in relation to the company's risk assessment process. b) Discuss TWO (2) possible risks for each process and measure the risks whether high, medium or low by taking into account the impact and probability of the risks identified above. C) Based on the risks identified in b) describe the appropriate risk response for each risk identified. d) Discuss the internal controls that can be implemented to prevent the risks identified in b) from occurring and the control tests you will perform to ensure that the internal controls implemented are effective. You are an internal auditor assigned to a transportation company and are currently auditing the company's risk management and control processes. You expect an amount losses that may be incurred if the risk management and control processes are not implemented properly are as follows: 1. Accounts receivable collection process amounting to RM10 million. 2. The process of purchasing fuel from local oil companies amounting to RM21 million. 3. The process of selling used trucks by auction of RM3 million. 4. The process of ordering advertisements in the media RM2.5 million. Once an assessment has been made of the company's risk assessment process, the auditor estimates the probability for each of these processes to incur a loss is as follows: 1. Account receivable collection process - low. 2. The process of purchasing fuel from local oil companies - high. 3. The process of selling used trucks by auction high. 4. The process of booking advertisements in the media RM2.5 million - low. Be required: a) Discuss your responsibilities as an internal auditor in relation to the company's risk assessment process. b) Discuss TWO (2) possible risks for each process and measure the risks whether high, medium or low by taking into account the impact and probability of the risks identified above. C) Based on the risks identified in b) describe the appropriate risk response for each risk identified. d) Discuss the internal controls that can be implemented to prevent the risks identified in b) from occurring and the control tests you will perform to ensure that the internal controls implemented are effective.

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Part a The responsibility is to evaluate the companys risk ... View the full answer