KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2020/2021

BBBD3023 CORPORATE GOVERNANCE & ETHICS

TUTORIAL QUESTIONS

TUTORIAL 7 [WEEK 8]
(LECTURE 7 Internal Control System I)

1. In your own words, explain your understanding of the meaning of ‘internal control’ in a
corporate organisation. In your answer also explain why the government either through
regulations or the Malaysian Code of Corporate Governance encourages companies to
establish a sound internal control system/framework within their company.

2. Bill is a director in a company that has recently gone public. He seeks your advice on the
following matters:

(i) The objective of establishing an internal control system or framework in a company;

and

(ii) The primary areas of focus when one is establishing a comprehensive internal control
system or framework for a company.

3. Elaborate on the controls that may be incorporated in the internal control system of a
listed company.

4. List SIX (6) of the key implementation factors in risk management.

5. How would you ensure a formal and effective enterprise risk management (“ERM”)
framework?

Note: You may look for the answers from Internet/lecture notes (various sources)

Self-test Question:
Topic: Internal Control & Risk
Question 24 a (i) (pp. 18 Practice & Revision Kit P1: Governance, Risk & Ethics, and
Tenth Edition February 2017)
Question 26 (b) (pp. 19 Practice & Revision Kit P1: Governance, Risk & Ethics, and
Tenth Edition February 2017)
Question 27 (pp. 20 Practice & Revision Kit P1: Governance, Risk & Ethics, and
Tenth Edition February 2017)
Question 30 (b) (pp. 22 Practice & Revision Kit P1: Governance, Risk & Ethics, and
Tenth Edition February 2017)