Page 101 - CA Final PARAM Digital Book.

In order to achieve proper internal control over the sale of tickets and its collection by Funtoosh
Ltd., following system should be adopted-

5 Surprise Check

4
1 Advance Booking 2 Enterance
Printing Tickets Ticket Sale Ticket

Discount/Free Pass

Cash Deposit in
Cash Reconcile
3 Bank
Printing of tickets: Serially numbered pre-printed tickets to avoid duplication to prevent
forgery. Non-repetition of serial no. for reasonable period.
• Advance booking: System shall ensure that all advance booked tickets are paid for.
• Ticket sales: Sale of tickets should take place from the Central ticket office ,
preferably through machines
• Discounts and free pass: Discount policy should be properly authorized and such
authorization should be preserved
• Daily cash reconciliation: Cash collection should be reconciled with the number
of tickets sold. Serial number of tickets will facilitate the reconciliation.
• Daily banking: Each day’s collection should be deposited in the bank on next
working day. Cash should be in the custody of properly authorized person,
preferably in joint custody. Daily cash in hand report should be signed by the
authorized persons.

Entrance ticket: Entrance tickets should be cancelled at the entrance gate
Surprise check: Internal audit system should carry out periodic surprise checks for cash
counts, daily banking, reconciliation and stock of unsold tickets etc
Author’s Note
In the Institute’s answer each point was an individual point by itself .However in order to give a better
picture for the sake of understanding the points:
-A diagram has been created and
-Points have been rearranged in the order of the diagram

QNO Five Components as per COSO & Three Objectives Old Course – (N20E)
175.500 TITANIUM CNO—MRI.600

Explain the concept of Integrated framework issued by Committee of the Sponsoring Organisations of the
Treadway Commission (COSO Framework) duly mentioning its four out of five components and discuss the
three category of objectives that can be achieved as per COSO framework.
Answer Concept of COSO:
COSO’s Internal Control – Integrated Framework was introduced in 1992 as guidance on how to
establish better controls so companies can achieve their objectives. COSO categorizes entity-level
objectives into operations, financial reporting, and compliance. The framework includes more than 20
basic principles representing the fundamental concepts associated with its five components: control
environment, risk assessment, control activities, information and communication, and monitoring.
Some of the principles include key elements for compliance, such as integrity and ethical values,
authorities and responsibilities, policies and procedures, and reporting deficiencies.

Five Components of COSO are as follows:
(i) Control Environment

(ii) Risk Assessment
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