QUESTION 4

A. Brava Company is a merchandising company selling diving equipment. The company has a big warehouse to store their inventories. Describe four (4) internal controls that can be implemented by Brava Company to safeguard their inventory and its related accounting records. (8 marks)

B. Having a strong internal control in place does not guarantee fraud will never happened. Explain three (3) situations that limit the effectiveness of internal control in preventing fraud. (6 marks)

C. Provide three (3) examples on how technology adds value in accounting processes. (6 marks)