Goodner Brothers

2.0 From this case, we have found that Sales Representative(Woody Robinson) in Goodner’s Huntington sales office took as an advantage of Goodner Brothers Inc weak in internal controls by stealing a large amount of inventory. So, We believe that this are the following key internal control objectives should be maintain in Goodner’s Huntington sales office. Firstly, Sales office’s staff need to ensure that the every transaction should have a proper authorization to prevent this kind of fraudulent use of resources. For example, Sales office’s staff should get the approval from the management or manager for very transactions. By apply this first objective, the shortages of inventory can be minimized and makes all the transactions going very smoothly. Secondly, Physical safeguards and security should have been the key internal control objectives. For example, sales office’s staff need to ensure that access to physical assets and information systems need to be controlled and properly restricted to authorized personnel. On the other hand, validity also should have been the key internal control objective. So, sales office’s staff need to ensure that all recorded transactions fairly need to be represent the economics events that actually occurred and also should be executed in accordance with management’s general authorization. Next, Error in handling also should have been the key internal control objective. So, sales office’s staff need to ensure that whatever errors detected at any stage of processing receive prompt corrective action and also should reported to the appropriate level of management. Next, Completeness also should have been the key internal control objective. So, sales office’s staff need to ensure that no valid transactions should have been omitted from the inventory records. This five objectives that we stated overall can minimum the bad debts. Furthermore, good control can minimized or maintain of the inventory records.

2.1 On the other hand, we have...