During the audit of XYZ Pty Ltd you identified the following breakdowns in internal controls. Please provide at least one (1) example of an internal control that could be implemented to prevent the error. In addition, explain why this error is an issue for the company and what possible ramifications could eventuate (e.g. which accounts are affected, whether there is an over or understatement of balances, possibility of fraud etc). explanation:

1)Human resource team interview staff prior to hiring them but due to time constraints they do not follow up with reference checks.

2)Ageing report of accounts receivable is not regularly reviewed.

3)Users that are locked out of their account because they use the wrong password will have their accounts automatically unlocked over night.

Answer rating: 100% (QA)

1 Human resource team is appointed to fulfill the various steps required for hiring the staff If the... View the full answer