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Case Study: Arise limited is registered with Companies House. The Company is currently funding its operations through the parent company over the past 4 years. The newly appointed chairman of the Board of Directors has highlighted the need to organise the company strategically to attract more investors. Mr Brown, the recently appointed Managing Director of the company, has recommended to the Board the appointment of an accountant to deal with putting a proper internal control structure in place and the appointment of an external auditor.The newly appointed Managing Director is not an accountant and has requested for your advice on the need for having an adequate internal control system in the company.
Required:a. Define internal control system
b. What is the objective of having internal control system in an organisation?
c. What are the features of a good internal control system
d. In relation to internal control system, highlight the responsibilities of:i. Managementii. Board of Directorsiii. External auditor
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