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Internal control consists of five main components. These five components are integrated with management processes and are derived from the way management runs the
Internal control consists of five main components. These five components are integrated with management processes and are derived from the way management runs the organisation. INFORMATION SolarTech Ltd is a company that researches and manufactures solar energy products including solar panels and inverters. The following actions, policies, and procedures form part of SolarTech Ltd's system of internal control: REQUIRED: Identify the component(s) of the system of internal control to which each of the above points relates. Give reasons for your choice. If you have chosen control activity, state which type(s) of control is (are) being implemented, for example segregation of duties. 1.1 SolarTech requires each of its employees to sign an ethical code of conduct every year, the conditions of which are set by the directors. The conditions and consequences of breaching the code are explained to employees at a seminar attended by the chairman and the board. Any alleged code violations are investigated by a committee of the board. SEO S 1111 CO
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