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It is commonly believed that the need for an internal control system develops as the organization grows. As a small entity, characterized by the direct involvement of the owner on a daily basis, grows into an organization with specialized and/or departmental operations, the need for internal controls does increase (Bodnar, 1975). In general, this idea is based on an accepted group of controls that are useful in allowing management to evaluate financial and operational efficiency from reports. Subordinates, therefore, must transfer information throughout the hierarchy of the business. Management depends on internal controls to provide some assurance that the reports generated are accurate and their directives have been carried out by the responsible subordinates. These internal controls increase the confidence that the owners or managers have in the business. Although the need for internal controls increase in direct proportion to size of the business, the system is very imperative for the small business. (Monday, J. (2014). INTERNAL CONTROLS AND OPERATING PERFORMANCE OF SMALL BUSINESSES IN LAGOS METROPOLIS. Lagos Metropolis.) Assume that you are an individual owner of 10 restaurants in various areas of Muscat. At every location of your business, you have a team of 5 people. One of them is a cook, two are waiters, one is a manager of the restaurant and the fifth one is a cleaner. It being 10 restaurants across various areas of the city, you cannot physically visit them all on a daily basis. Hence you feel need some automated control system which makes the governance and management of the business smooth. 1. What type of internal control for inventory management system can you design for your business? 2. Presentation of the topic Total (8.5 marks) (1.5 Marks) 10 Marks