ALL PARTS OF THIS QUESTION Part A You are the newly appointed accountant for Slipstir plc which produces and sells premium non-alcoholic drinks. You are about to prepare the financial statements for the year ended 31 March 2021. You have been given the trial balance as follows: Slipstir plc Trial balance as at 31 March 2021 '000 '000 Equity shares (nominal value 1) 12,750 Revaluation reserve 1,250 Buildings 13,500 Machinery (at cost) 6,620 Machinery (depreciation at 31 March 2020) 2,400 Investments 10,030 Investment income 1,071 Inventory at 31 March 2020 1,340 Trade receivables/payables 1,760 1,870 Retained profits at 31 March 2020 14,874 Sales/purchases 4,710 10,250 Cash 2,020 Wages and salaries 2,250 General administrative expenses 1,780 Sales and distribution costs 1,131 45,141 44,465 You notice that the trial balance doesn't balance and you record the difference in a suspense account. By examining the accounting records, you have identified the following problems: An invoice for a credit sale for 57,800 has been incorrectly posted to sales as 75,800. The associated receivable was correctly recorded. Wages of 24,000 paid in cash were correctly recorded in the cash book but were incorrectly debited twice in the wages expense account in the ledger. A new machine was purchased for cash for 290,000 during the year. The machine's asset value was correctly recorded in the asset account but the cash payment was incorrectly understated in the cash book by 20,000. No depreciation has been charged on buildings this year. During the year, the company had a professional valuation carried out and the company's buildings were revalued upwards by 650,000. The adjustment for this was made to the value of buildings in the asset account but no adjustment was made to the revaluation reserve. (b) Use of a suspense account is one internal control available to a company. Briefly explain why companies have internal controls and identify one other internal control that a company might use. [4 marks]