Professional Documents
Culture Documents
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Part One
3. List and discuss three risk exposures CLS faces. Suggest internal controls to
address each risk, clearly explaining how each control is related to the risk.
A. Fee Arrangement
The entity should established rate of fees which is applicable to all clients. It
should have already listed its rate based on the complexity of the consultancy
service and the duration of the project as appropriate.
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The entity should assign one person to choose who among the senior
consultant should lead the engagement. This person should acquire the knowledge
and skills necessary for the selection of the qualified consultants. By this, conflict
of interest may be avoided.
Part Two
1. Using spreadsheet software, prepare an analysis which shows, for each
consultant:
a. Their salary amount
b. Whether the salary is within the 75th 90th percentile
c. If the salary is not within the 75th 90th percentile, whether it is greater than
the median and the amount by which it differs from the 75th 90th percentile.
d. The average salary within each position level (assistant, associate, senior)
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the median. But if the consideration of 75th-90th percentile is observed, 63.63% of the
employees salary should be adjusted.
d. Are there differences in pay that appear to be based on factors other than
expertise or length of service? If so, what risk exposures does CLS face? What
internal controls would you recommend to mitigate them?