Rotate 26:09 03 Image Word 3/4 46 PART THE AUDITEE'S RESPONSIBILITY FOR FINANCIAL INFORMATION Query 21 The governing body should exercise ongoing oversight of risk management and ensure that particular objectives are achieved. What are the objectives that should be met in terms of the King VM report? Query 31 After the process of risk identification and risk evaluation, the entity should decide on an appropriate risk response for each of the risks identified. What are the different risk responses available to us as an entity? I look forward to your response. Mr A. Hopeful (Director) REQUIRED Assist the director of Corporate (Pty) Ltd with his queries. Mark allocation Query 1 (5) Query 2 (5) Query 3 (6) Question 2 Internal control: Fundamentals [19 marks] LEVEL 1 The International Standard on Auditing (ISA) 315 (Revised), which identifies and assesses the risks of material misstatement through an understanding of the entity and its environment, requires an auditor to understand an entity's internal control. ISA 315 (Revised) defines internal control and deals with the different components thereof. REQUIRED 1. Define internal control. 2. List the components of an entity's internal control, and give a brief explanation of each component. (Adapted from ACCA Question 2a, 8 December 2011) Question 3 Internal control: Fundamentals [15 marks) OCR 151 (14) (19 LEVEL 1 Markup Extract Text Signature Note O 411