Evaluate how well Frank and Joe have handled the problem.
Evaluate Larson Cement’s internal control processes as they apply to this case.
Joe Frecaso was recently hired as the controller for Larson Cement Company after the previous controller was killed in a boating accident in Biscayne Bay. That controller had been with the company since it first opened its doors. Joe spends most of his time in the back office that has a panoramic view of “the yard” where the company trucks constantly come and go throughout the day.
Larson is a privately held company owned by the same family for 40 years. The company delivers concrete to construction sites throughout Miami/Dade County area. Frank Larson, the son of the original CEO, runs the company. Joe and his two staff accountants; Betty Ladrone, the treasurer; and her three staff members support the company’s operations. There is also a secretary, front-office staff of three, an operations supervisor, and a sales staff of seven.