Question 3 (25 Marks)

The Auditor General stated that "Nobody's reporting, nobody's accounting, and nobody really knows for sure what has happened to this money." Critically discuss the most obvious key financial risk faced by these municipalities. Elaborate on the four (4) risk response strategies available to entities and evaluate which one is the most appropriate. Suggest mechanisms through which your response may be implemented.

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

Question 4 (25 Marks) Performing secondary research, discuss the various outcomes / opinions that the Auditor General of South Africa may express for municipalities that emanate from an audit of their financial statements. Discuss your findings in relation to operational risk as it relates to the case study. State any assumptions you might be required to make.