SECTION A-SHORT ANSWER QUESTIONS [50 MARKS] Answer ALL questions in this section. 1. Explain three benefits of internal controls and risk management in a business. (6 marks) 2. For each of the following risks, recommend two controls that a company could put in place: a. Shoplifting from a retail business. (2 marks) b. Goods being sent to customers but not invoiced. (2 marks) c. Poor quality supplies being purchased. (2 marks) d. Incorrect prices being charged. (2 marks) 3. Describe the relationship between accounting and accountability. (5 marks) 4. Define and explain the purpose of sustainability reporting. (8 marks) 5. Bobs Ltd owns a plant that originally cost P700 000 on 01/01/2010 and has a carrying amount of P350 000 at 31/12/2015. The plant is depreciated on a straight line basis to a zero residual value over a 10 year useful life. As per IAS 36 Bobs Ltd performed an indicator review at 31/12/2015 to asset whether this asset might be impaired. Initial information collected for the purpose of the review included: The accountant budgeted that net cash inflows will be slightly reduced over the next 3 years of usage, due to a drop in the market demand for the plants output. The accountants opinion is that there will be no market for the plants output after 31/12/2018. The estimated fair value of the plant is P250 000. Required: Outline the reasons why you think this asset should be impaired. (8 marks) 6. Compare and contrast the cash flow statement and the statement of comprehensive income. (10 marks) 7. Identify the section of the statement of financial position the following line items would each be classified under (5 marks) a. 10% Debentures repayable 2036. b. Dividends reserve. c. Retained earnings. d. Provision of taxation e. Investment in CTD ltd