Table 12.4 (page 557) identifies five risks typically encountered when updating the pay records.

Required

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

(b) Determine how many of the common controls described in table 12.4 are present in the update pay records process at AB Hi-Fi.

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

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