Question #1. (10) Mr A Hassan has recently acquired the controlling interest in Quicksand Co, who are importers of sportswear. In his review of the organisational structure of the company Mr Hassan became aware of weaknesses in the procedures for the signing of cheques and the operation of the petty cash system. Mr Hassan engages you as the company's auditor and requests that you review the controls over cheque payments and petty cash. He does not wish to be a cheque signatory himself because he feels that such a procedure is an inefficient use of his time. In addition to Mr Hassan, who is the managing director, the company employs 20 personnel including four other directors, and pproximately three hundred ch drawn each month. The petty cash account normally has a working balance of about Rs.300, and Rs.600 is expended from the fund each month. Mr Hassan has again indicated that he is unwilling to participate in any internal control procedures which would ensure the efficient operation of the petty cash fund. are Required (a) Prepare your recommendations for good internal control procedures for: (i) Cheque payments (ii) Petty cash (Marks will be awarded for the style and layout of the answer.) (b) Discuss the audit implications, if any, of the unwillingness of Mr Hassan to participate in the cheque signing procedures and petty cash function