Case 1: Control Environment and Control Activities: The Importance of Hiring Trustworthy Employees Joe and Mary Gray started their multimillion-dollar home electronics and car audio store chain in Texas in the late 1970s. By mid-1983, their company had grown to 10 stores in 3 states with 500 employees and gross sales of $30 million. The decline of the oil industry in the mid- 1980s led to the company losing almost half of their employees. Additionally, as people moved to more economically viable states, employee turnover continued to increase. During this time, the Grays needed to fill a recently vacated Controller position in their main office. The position was crucial and required a person who was highly motivated and knowledgeable of operations. After interviewing several candidates, they decided to give Jeff Smith the position. Jeff was nothing like the previous Controller. He was quickly labeled a "maverick" and was completing tasks that had been languishing for months. Many of the employees noticed Jeff in the office