Joan Hacker, CPA, is the CFO of Smooth Ride, a publicly-held boat trailer manufacturer. At the close of the second quarter of 2009, Joan received the physical count of raw materials inventory amounting to $2,695,872. At the same time, Joan’s self-designed computer model for deriving a inventory figures showed a raw materials inventory calculation of $3,374,024, which was $678,152 higher than the physical count calculation. Since Joan was rushed to prepare the financial statements, she used the computer model figure, resulting in a $181,000 net income and $0.03 per share earnings. She adjusted the inventory to equal the correct count for the end of the third quarter when she had more time. The result for Quarter 3 was a net loss of $253,000 and a loss of $0.04 per share.

Required:
What are the control ramifications of Joan’s actions?