Coco Paving was started by four brothers who lived in the Montreal area. Over time, the brothers
Question:
Coco Paving was started by four brothers who lived in the Montreal area. Over time, the brothers moved to different parts of the country. They decided it was a good idea to keep the company and organize their work as separate divisions under the same company. There are now three divisions, one for each of the brothers who are actively involved in paving. The fourth brother, Edward, is responsible for accounting and record keeping. Edward went back to school and completed an accounting designation, and now has three employees in the accounting area.
Each of the brothers has moved on to specialize in a different kind of paving. In Montreal, it is mainly roadwork. In Edmonton, the work is primarily related to the oil industry. In Halifax, the work is mid-sized to large commercial fishery projects. All of the brothers prefer to subcontract their work rather than hiring full time construction employees, although some of the subcontract relationships have lasted over fifteen years now.
Required:
Explain what you would do to document your understanding of internal control for Coco Paving. Identify potential risk areas where you would need to focus additional attention.
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman