$2.$ An entity$$s internal control system is an important mechanism for ensuring reliable financial reporting, effective and efficiency operations and compliance with laws.

a$.$ Prepare an analysis of the control issues identified inclusive of deficiencies Identify the transaction level control breaches and entity level control breaches at CLF$.$ Was CLF$$s failure a result of improper assessment of internal control risk and$/$or improper controls? If so$,$ to what extent do you think these factors contributed to CLF$$s failure. Use the Committee of Sponsoring Organisation $($COSO$)$ framework to prepare the analysis and recommend practical solutions for the issues identified.

b$.$ Explain how an Internal Audit Department would have assisted CL Financial in the areas of Governance, Risk Management and Control?

c$.$ Why is a strong control environment so important in public companies like CL Financial.

d$.$ What are some of the inherent limitations in internal control that allowed the mismanagement to occur at CLF and its failure?