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Sir, i am curious to know how native speakers deal with theory bullet points below.
I can’t find anything even similar theory explanation with respect to these kinds of things in Bpp and Kaplan textbooks.
this is Caterpillar question that released in Dec 2016
b) Caterpillar Co’s cash cycle strength and tests of control.
Control strength
Caterpillar Co has an internal audit department which has undertaken a number of internal control reviews, which specifically focused on cash controls at stores during the year.
This is a strong monitoring control as stores will aim to ensure that company procedures are maintained as they would not with IA to report exceptions at their stores.Test of control
Discuss with IA the programme of their visits to stores and the areas addressed on these visits. This will assess the strength of this monitoring control. In particular, enquire of IA whether over a rolling period all stores will be visited.
Review the IA department files for the results of the store visits, to confirm that the 20 stores programmed to be visited did all actually take place and for exceptions noted and actions taken.I tried to find anything similar to this bullet in Textbooks, but i couldn’t…..
i’m really afraid of how to handle and write these theory answers even if there is anything similar and nothing in textbooks that i can refer in order to make sentences logically.how to deal with this? the only way to go through is to approach a number of questions until i’m familiar with that? or read theory many times and resolve the question again?
This is application of knowledge and not, in general, questions will come up which are not specifically covered in any text (just as with F5 say, you will not find in text exact examples of calculations you have to perform in the exam).
Be alert to information in the questions.
You are told:
“Caterpillar Co has an internal audit department which has undertaken a number of internal control reviews specifically focusing on cash controls at stores during the year. The reviews have taken place in the largest 20 stores as this is where most issues arise.”
You should know the type of functions IA carried out so should be able to suggest that their monitoring activities are controls.
Once that is established, you simply have to get evidence that IA is carrying out its duties as required ie that the control is operating.
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