Question 1: Internal control is a dynamic integral procedure which is continuously adapting to the modifications an organization is facing. Management and personnel at all levels have to be included in this process to address risks and to give reasonable assurance of the accomplishment of the entity’s mission and general objectives.
Required:
The public sector is usually concerned with the delivery of a service and a beneficial outcome in the public interest. Describe in details the general objectives of internal control in the public sector.
Question 2:
Part A: The information is given below:
Required:
Compute the degree of operating leverage, degree of financial leverage and the degree of combined leverage and deduce the results.
Part B: An efficient internal control system, no matter how well conceived and operated, can give only reasonable and not absolute assurance to management regarding the accomplishment of an entity's objectives or its survival.
Required:
Describe the limitations on internal control efficiency.