Reference no: EM13339424

Questions

The case enclosed Is on Goodner Brothers Inc, the wholesaler of tyres. An employee of this company, Woody was in serious financial trouble.

To remedy this problem, the employee took advantage of his employer's weak internal controls by stealing a large amount of inventory, which he then sold to other parties. The act of Woody was a form of major fraud.

Assume you are the internal auditor of Goodner Brothers Inc. Write a report to the board of Goodner Brothers Inc. In the report you are required to:

1) List and explian what you believe should have been the key internal control objectives for Goodner's Huntington sales office

2) Identify six key control weaknesses and its implication that were evident in Huntington unit's operations.

3) Develop control policies or procedures to alleviate the control weaknesses you identified in responding to question above.

4) Analyse with reason(s), which other parties besides Woody Robinson, were at least partially responsible for inventory losses Goodner suffered.