1. List what you believe should have been the three to five key internal control objectives of Goodner’s Huntington sales office
a. Controls provide reasonable assurance that there is an adequate sales process involving all proper source documents that are filed or digitalized and stored ensuring completeness and accuracy of the process
b. Controls provide reasonable assurance that the sales office’s inventory is properly managed and secure at all times with logs monitoring frequency and length of access by employees
c. Controls provide reasonable assurance that there is sufficient separation of duties involving the sales order process and several employees are involved in processing and accounting for each order
d. Controls provide reasonable assurance that automated and manual controls are in place and utilized for initiating and completing the timeliness of appropriateness of accounting processes in business functions
e. Controls provide reasonable assurance that the accounting systems are properly monitored and encrypted allowing access only to those permitted and necessary to perform the accounting functions
2. List the key internal control weaknesses that were evident in the Huntington unit’s operations.
a. There was no segregation of duties involving the accounting system (that was off the shelf and probably not sufficient for proper performance for the company)
b. There was little to no security protecting inventories off site
c. There was no traceable sales order process
d. There was no consistent recalculation of sales orders and respective recounts of inventory to match sales orders
e. There was a lack of internal discipline for complaints filed against employees
f. There was a lack of employees available to properly handle inventory and dispose of obsolete inventories
g. End of year physical counts were not recounted by different personnel and matched to rate their accuracy
3. Besides Woody Robinson, what other parties were at least...