The owner of Touring Inc., Mei Chang, is concerned about the financial management of her company. When she started up Touring Inc., a company that provides bus tours in Banff, Alberta, she hired Peter Rosen to manage the company. Chang is not highly involved in the operations of her business since she is located in Toronto, Ontario. She has entrusted the management of Touring Inc. to Rosen. Chang recently received financial statements prepared by Rosen for the year ended 2012. She noticed that sales were quite high but that net income was very low. For instance, in July 2012, total sales were $6,800 but reported profits were only $600. Chang is worried that Rosen is not being honest. 

What action should Chang take to ease her mind?

Answer rating: 100% (QA)

First Chang should ask for explanations from Rosen and check his records If Rosen is unwilling to gi... View the full answer