Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. To ensure the company retreat would not be cut the manager of Lavina Company decided to save money by canceling the external audit of internal controls Carla Farah's manager has told her to reduce costs. Carla decides to raise the deductible on the plant's property insurance from $5 thousand to $10 thousand. This cuts the property insurance premium in half in a related move, she decides that bonding the plant's employees is a waste of money because the company has not experienced any losses due to employee theft. Carla saves the entire amount of the bonding insurance premium by dropping the bonding insurance Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian To ensure the company retreat would not be cut the manager of Lavina Company decided to save money by canceling the external audit of internal controls. Carla Farah's manager has told her to reduce costs Carta decides to raise the deductible on the plant's property insurance from $5 thousand to $10 thousand. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant's employees is a waste of money because the company has not experienced any losses due to employee theft. Carla saves the entire amount of the bonding insurance premium by dropping the bonding insurance Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts Separate recordkeeping from custody of assets. Apply technological controls. Divide responsibility for related transactions. Establish responsibilities. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian Divide responsibility for related transactions. Establish responsibilities. Perform regular and independent reviews. Insure assets and bond key employees. Maintain adequate records