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ANSWER 
(a) 
Four objectives of an internal control system
(i) 
To enable management to carry on the business of the enterprise in an orderly and 
efficient manner 
(ii) 
To satisfy management that their policies are being adhered to 
(iii) 
To ensure that the assets of the company are safeguarded 
(iv) 
To ensure, as far as possible, that the enterprise maintains complete and accurate records 
(b) 
Four major controls
(i) 
Control over customers' creditworthiness
. 
Before any order is accepted for further 
processing, established procedures should be followed in order to check the 
creditworthiness of that customer. For new customers procedures should exist for 
obtaining appropriate references before any credit is extended. For all existing customers 
there should be established credit limits and before an order is processed the sales 
assistants should check to see that the value of the current order will not cause the 
customer's balance to rise above their agreed credit limit. 
The objective of such procedures is to try to avoid the company supplying goods to 
customers who are unlikely to be able to pay for them. In this way the losses suffered by 
the company as a result of bad debts should be minimal.
(ii) 
Control over the recording of sales and receivables
. The most significant document in the 
system is the multiple order form. These forms should be sequentially pre-numbered and 
controls should exist over the supplies of unused forms and also to ensure that all order 
forms completed can be traced through the various stages of processing and agreed to the 
other documents raised and the various entries made in the accounting records.
The main objective here will be to check the completeness of the company's recording 
procedures in relation to the income which it has earned and the assets which it holds in 
the form of receivables.
(iii)