Using the information from Problem 8-1B, briefly discuss the characteristics of internal control, beginning with competent, reliable, and ethical personnel.
In Problem 8-1
Kyanoga Real Estate prospered during the past 10 years. Business was so good that the company bothered with few internal controls. The recent decline in the local real estate market, however, has caused Kyanoga to experience a shortage of cash. John Flannigan, the company owner, is looking for ways to save money.