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Evaluation of Internal Control criteria.
Bemis Company is a rapidly growing start-up business. Its record keeper, who was hired one year ago, left town after the company's manager discovered that a large sum of money had disappeared over the past six months. An audit disclosed that (he record keeper had written and signed several checks made payable to her fiancé and (hen recorded the checks as salaries expense. The fiancé, who cashed the checks but never worked for the company, left town with the record keeper. As a result, the company incurred an uninsured loss of $84,000. Evaluate Bemis's internal control system and indicate which principles of internal control appear to have been ignored
What was the firm's net income and what mist have been the firm's revenues, Evaluate was EBIT?
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