(Cronje, 2021 - https://www.news24.com/fin24/companies/industrial/nobody-really-knows-what-happened-to-r55bn-in-sasworst- run-municipalities-ag-20210622)

Question 1 (25 Marks) The FIRM risk scorecard builds on the different aspects of risk, including timescale of impact, nature of impact, whether the risk is a hazard, control or opportunity, and the overall risk exposure and risk capacity of the organisation. Compile a FIRM risk scorecard for the above-mentioned municipalities who could not produce their financial statements. Make relevant assumptions where necessary.

Question 2 (25 Marks) "Risk treatment is sometimes referred to as risk control and it includes the selection and implementation of actions to reduce risk likelihood and risk impact. With the use of a diagram, discuss the concept of 'Cost-effective controls' and relate the discussion to the use of consultants for producing a financial statement in terms of the case study.