Question $1$:

$($a$)$ A company found out that out of its $9,000$ employees, there were $400$ people who didn't report to anyone, and there were $38$ people who reported to each other.

Required:

Assess the reason$($s$)$ why unsupervised employees or employees who report to each other represent potential threats to internal controls.

$(10$ marks$)$

$($b$)$ Small companies have only a few employees, sometimes fewer than $100$ employees.

Required:

Assess the reason$($s$)$ why small companies are at higher risk of theft by employee, as compared against larger companies.

$(10$ marks$)$

$($c$)$ A number of employee thefts involved a fraudulent disbursement by an employee.

Required:

Select various ways that a company can take to reduce the likelihood of fraudulent disbursement.

$(10$ marks$)$