You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless, Inc., a janitorial service company. Spotless will provide all of Time Treasures’ janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. Initial

What are some of the internal control problems you foresee as a result of outsourcing the janitorial service with this contract?

Explain recommendations to control risk that would you suggest after reviewing the contract.

Answer rating: 100% (QA)

ANSWER Hwever nt ddressing defiienies n exse yur business t ertinl nd finnil risks nd lsses Frtuntel... View the full answer