Table 13.4 (page 598) identifies two risks typically encountered when adjusting the general ledger.

Required

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

(b) Determine how many of the common controls described in table 13.4 are present in the adjust the general ledger process at AB Hi-Fi.

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

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