1) Which of the following are the main benefits for an effective internal control system? 1. Safeguard the shareholders' investment II. Manage and control business risk III. Reduced time required for the external audit IV. Maximise profitability Choose the correct option A. I and II B. I and III C. III and IV D. \\( I \\) and IV 2) ABC Ltd has been criticized for its apparent lack of internal control. Staff behaviour is unprofessional; management don't appear to reprimand staff for this often because their allocated staff changes frequently and there is no annual assessment or feedback on staff. Which of the following controls will NOT help reduce these problems? A. Bonus payouts B. Policies and procedures C. Contracts of employment D. Performance appraisals (1) 3) The Board of XYZ Ltd has become aware of members of the public resident local to its factory are expressing concern over proposals to build an early learning school near the factory premises. It has decided to be proactive in managing the associated reputation risk, perhaps by sponsoring the early learning school and becoming involved in relevant activities. It has also asked its internal audit tearn to carry out a formal review of whether factory emissions are in line with industry standards. This is an example of: A. A system audits B. An environmental audit C. A value for money audit D. A social audit (1) 4) Which of the of the following terms best describes the basis on which the Corporate Governance Code is built? A. Apply and comply B. Comply or explain C. Apply and explain D. Comply or else (1) Choose the correct option A. A-II, B-III, C-I and D-III B. A-II, B-III, C-II, and D-IV C. \\( A-I V, B-I I I, C-1 \\) and D-II D. A-II, B-IV, C-I and D-III 6) Use Table B to complete the sentences in Table A Choose the correct option A. A-II, B-III, C-IV, and D-I B. \\( A-I, B-I I I, C-I V \\), and \\( D-I I \\) C. A-II, B-IV, C-III, and D-I D. A-III, B-IV, C-II, and D-I 7) Right To Health (RTH) is a registered Non-Profit Organisation (NPO) with over 5000 employees across the country and 800 volunteers providing in-home care for elderly and disabled people suffering with proper health care. A six-member Board of Directors governs RTH. The Chief Executive Officer (CEO) chairs the Board which comprises the Chief Financial Officer (CFO) and four independent, unpaid non-executive directors who were appointed by the CEO based on past business relationships. The CEO/Chair sets the Board agendas. There is rarely any discussion of operational matters relating to the organisation, as the CEO believes these are outside the directors' experience. The Board has no separate audit committee but relies on the annual management letter from the external auditors to provide assurance that financial controls are operating effectively. External auditors were previously appointed by the CEO, without any assistance from the Board. Which THREE of the following recommendations would improve compliance with the principles of good corporate governance? I. Separating the CEO and chairman roles II. Establishing an audit committee III. The external auditor qualifying the annual accounts IV. Holding an AGM V. Establishing an internal audit department VI. Appointing independent non-executive directors Choose the correct option A. I, II and III B. II, III and IV C. III, IV and V D. I, II and VI