(b) Identify the most appropriate approved share option scheme for Happy Home Ltd. Outline the scheme
requirements and the tax benefits of using it compared to the current unapproved scheme. (6 marks)
(b) Criticise the internal control and internal audit arrangements at Gluck and Goodman as described in the case
scenario. (10 marks)
(b) Distinguish between strategic and operational risks, and explain why the secrecy option would be a source
of strategic risk. (10 marks)
(iii) A statement on the importance of confidentiality in the financing of the early stage working capital needs
and an explanation of how this conflicts with the duty of transparency in matters of corporate
governance. (6 marks)
Professional marks for layout, logical flow and persuasiveness of the statement. (4 marks)
(e) Internal controls are very important in a complex civil engineering project such as the Giant Dam Project.
Required:
Describe the difficulties of maintaining sound internal controls in the Giant Dam Project created by working
through sub-contractors. (4 marks)
(b) The Sarbanes-Oxley Act contains provisions for the attestation (verification) and reporting to shareholders of
internal controls over financial reporting.
Required:
Describe the typical contents of an external report on internal controls. (8 marks)
