Internal Control Case Study of Westchester Distributing In an effort to meet their quotas for sales and possibly receive bonuses from the company, sales manager George Pavlov and salesman Carter Mario offered Mr. Wilson Moon a gift of $1 per unit purchased for 100 cases of Rising Sun beer. The $100 offered by Pavlov and Mario was recouped in the form of falsified expense reports submitted to Westchester distributing company. Mr. Moon subsequently found the Rising Sun beer difficult to sell and asked to return it with a refund. At this point, Pavlov and Mario offered a gift of a neon sign valued at $150, which was approved by Joe Roberts, the Vice President of Administration. However, Mr. Moon rejected this offer and has requested a full...The end:
.....ed to sign the Rules of Conduct annually, this document should also be posted in the workplace so that it remains in the minds of employees at all times. It is not enough that this document exists, the owners must show that they are making an effort to see that the rules are enforced. Finally, to ensure that these practices are being properly carried out, Mr. Patton should apply to be audited by and independent CPA. This will insure that there is a record of all accounting practices and verifiable by an outside source. Taking these steps will allow Mr. Patton to monitor the operations of his company more closely, and he will be able to provide independent records to verify that he has taken all possible measure to prevent future violations.