December 2007 Q1 (d)(i) and (ii)

Dear Sir,

Could you help me to check how many marks I will get if the answer is being laid down like this?

Importance of robust internal control

Robust internal control will minimise fraud created by anyone or any machine.

For example, an employee’s work will be checked by their manager in order to determine what error needed to be corrected before it becomes more serious.

Robust internal control can preserve shareholder wealth as, if there is an effective internal control system, it will reduce the monitoring cost which is incurred by the shareholders.

Robust internal control will ensure that the business operates in an effective manner.

For example, servicing the machine if the usage of the machine is more than 1 year in order to facilitate the production will enhance the business performance and as a result, more profit will be generated in future.

Recommendation
WM should operate in other country where the operation, ethics and cultural is similar to WM so that WM will not be distracted by differences in culture.

WM should strengthen the procedures in determining the accuracy of the
mallerite reporting. Such procedures include authorisation by the personnel and supervision of the calculations of the mallerite reserves

Effective communication between the local people and WM’s engineer which will encourage the local people to be more transparent in reporting matters concerning the mallerite.This will underpin shareholder confidence and attract more investors to WM

Thank You.