1 (a) Malik is the CEO of Cemara Bhd. His final vote will… 1(a) Malik is the CEO of Cemara Bhd. His final vote will determine the choices of internalcontrol in the company. Malik understand that the company has limited amount of budget.Therefore, debate which of the controls (i.e. preventive, detective and corrective) he shouldspend on. Include percentage of allocation for each control.  (b) Internal controls provide reasonable assurance that certain control objectives are achieved.Based on the following scenario, criticise the effectiveness of the controls and providerecommendation where necessary.(i) Melaka Sdn Bhd has its backup and disaster recovery plan well prepared. Since thecompany feels threatened with fierce competition from its competitors, the topmanagement decides not to share the plan with everyone, fearing it would bedisclose their confidential information. (ii) In order to save cost, Jemari Bhd installed only 5 printers to be shared among 50 oftheir staff. There are 5 dedicated computers connected to the printers. All staff willhave to bring their thumb drive to one of the computers in order to print theirdocument. (iii) Mentari Bhd had installed a closed circuit television (CCTV) camera to preventunauthorised people from entering the storeroom where all the inventories are kept.Last week, the CCTV was found to be not working and the management decidesnot to fix them. (iv) Understanding the importance of having a security guard to watch over thewarehouse, Kelinchi Bhd employed two guards who works in two shifts – day andnight shift. In order to cut the costs, the company employed the guards who barelyunderstand either Malay or English language.(v) Titi Sdn Bhd is a company that sells baby merchandise. It has a physical store thataccepts payment only through debit cards. Knowing they do not keep any cash inthe premise, the management only install a padlock in the main door for protection. Business Accounting ACCOUNTING 1634 Share (0)

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