You have met with a potential client, who informs you that all the employees and officers of his company are bonded. For this reason, he is requesting that under these conditions that you not look at his company's system of internal control so his company may reduce the cost of an audit.
Prepare a letter to the potential client explaining the following:
1. Why you can or cannot honor his request.
2. The reasoning for your decision.
3. The potential ramifications of your decision.
4. Based on your choice of action, what the perceived corporate governance of the company would be to the public.
Please begin your letter in this manner:
26, Wagner Street
Audit Town, MA 5636,
January 17, 2013
224, Leavitt Lane,
Mink City, MA 68768
Please start your letter:
Dear Mr. Contractor,
I regret to inform you that even though all the employees and officers of your company are bonded, I cannot avoid looking at the internal control system of your business. Your internal control system promotes the efficiency and implementation of your business and safeguards assets to avoid fraud and error. It is necessary to look at your internal ...
The answer to this problem explains the process of controlling embezzlement. The reference related to the answer is also included.