1. Bumble Beasley was recently hired as a marketing manager at ATI Corporation. When approached by the accounting manager regarding the development of an internal control plan for the marketing department, Bumble said: “Internal control? I’m not even really sure I know what that is. And even if I did, I had the impression that it was all the responsibility of you accounting types.” In the role of the accounting manager, explain to Bumble in your own words what internal control is. Also explain, in your own words, the basic purposes of internal control?
2. Bonnie is the owner of Doggie Day Care, a pet-sitting service. Pet owners bring their dogs to Bonnie’s facility, where they are either given private accommodations or are put in a large pen with other dogs. (Private accommodations are more expensive.) Bonnie and her employees feed the dogs twice a day; those dogs in private accommodations are also given two exercise periods per day. Owners pay half the daily fee at the start of the day, and the other half when they pick up the dog at the end of the day; owners must also certify that their dogs have had all required vaccinations. As Bonnie’s company is a day care service, no dogs stay the night in her facility. Bonnie accepts cash, checks and major credit cards in payment. List and discuss three to five risk exposures Bonnie’s company faces.
3. Pearl had been asked by her boss to develop a new way to process expense reimbursements in her company. In your own words, list and discuss the steps Pearl should take to accomplish her task.