Table 11.6 (page 524) identifies a risk typically encountered when costing products.

Required

(a) Analyse the degree of exposure to each of these risks for the costing products process at AB Hi-Fi.

(b) Determine how many of the common controls described in table 11.6 are present in the costing products process at AB Hi-Fi.

(c) Prepare a short report suitable for senior management to explain how risky you think the costing products process is, and how comprehensive the current internal controls are.

(d) Prepare a recommendation describing any changes you would like to make to the costing products process at AB Hi-Fi in order to reduce the level of risk.