Question

Regional Medical Centers (RMC) hired a new physician, Fred Clark, who was an immediate success. Everyone loved his bedside manner; he could charm the most cantankerous patient. Indeed, he was a master salesman as well as an expert physician. Unfortunately, Clark misdiagnosed a case that resulted in serious consequences to the patient. The patient filed suit against RMC. In preparation for the defense, RMC’s attorneys discovered that Clark was indeed an exceptional salesman. He had worked for several years as district marketing manager for a pharmaceutical company. In fact, he was not a physician at all! He had changed professions without going to medical school. He had lied on his application form. His knowledge of medical terminology had enabled him to fool everyone. RMC was found negligent and lost a $3 million lawsuit.
Required
Identify the relevant internal control procedures that could have prevented the company’s losses.
Explain how these procedures would have prevented Clark’s deception.


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  • CreatedApril 20, 2015
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