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Evaluate Larson Cement 's internal controls processes as they applies to the case.

Evaluate Larson Cement 's internal controls processes as they applies to the case.

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Expert Solution

The initial engagement phase of the case has not been completed properly. There has been no explicit consideration of preparing an incident report, of who to notify, or of possible legal issues (including the issue of secretly recording a video of the suspect), or the issue of loss mitigation and recovery. There has also been no thorough analysis of theaccounting records, or the handwriting on the checks.

Regarding internal controls, the signing of checks and the management of bank accounts should not be performed within the accounting function. Betty Ladrone works as a staff accountant andhandles these functions. But at least she doesn’t also reconcile the bank statements.

Joe is obviously slow in reconciling bank statements. Reconciliations need to be done promptly. Further, using an online banking service, check payments can be reviewed on adaily or weekly basis, something that Joe does not do.

ekkarill92 answered 2 years ago
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