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Ace Contractors is a large regional general contractor. As the company grew, Eddie Li was hired as the controller and tasked with analyzing the monthly income statements and reconciling all of the accounts formerly handled by Susan Zhao, the sole accounting associate. Li noticed a large amount of demolition expense for February, even though no new projects had started over the past few months. Since Li did not expect such a large amount of demolition expense, nor was any of this type of expense budgeted, Li dug a little deeper. He found that all of those expenses were bank transfers into another bank account. After additional research, it became evident that Zhao had been transferring funds out of the company bank account and into her own, and recording fake expenses to make the bank account reconciliation work. While the president kept the prenumbered checks locked up until check run time and signed all of the outgoing checks, he was unaware of the ability to initiate transfers via the internet. Li had also reviewed the bank reconciliations, which were completed by the office manager, and this fraud was not evident since the ending balance was reasonable. REQUIRED: 1. a. Identify and explain the four types of functional responsibilities that should be segregated properly. b. Identify and explain two incompatible duties that Zhao had that allowed her to take company funds. 2. Identify and explain two ways that the company had attempted to safeguard its assets and suggest two ways to strengthen controls in this area