Internal Control
Response to the following problem:
Abbott Inc. is expanding and needs to hire more personnel in the accounting office. Barbara Barker, the chief accounting clerk, knew that her cousin Cheryl was looking for a job. Barbara and Cheryl are also roommates. Barbara offered Cheryl a job as her assistant. Barbara will be responsible for Cheryl's performance reviews and training.
Required:
1. List some problems with the proposed personnel situations in the accounting department.
2. Explain why accountants are concerned with the hiring of personnel. What suggestions would you make to improve internal control at Abbott?
3. How would you explain to Barbara and Cheryl that they personally are not the problem?