Case Study 2Due by Sunday of Week 5, 11:59 p.m., Mountain time(Learning Objectives 2, 4: Explain the

Case Study 2Due by Sunday of Week 5, 11:59 p.m., Mountain time(Learning Objectives 2, 4: Explain the components of internal control; evaluate internal controls)Each of the following situations reveals an internal control weakness:Situation a. In evaluating the internal control over inventory for the Williams Oil ServicesCompany, an auditor learns that the warehouse receiving clerk is responsible for ordering partsfor supply inventory use in drilling services, counts the inventory when received at the dock,records the receipts into the inventory ledger, and takes the annual inventory, No supervisorreviews the receiving clerks work.Situation b. Nicole Lopez handles employee travel and expense reports for Scott Sales Services.With the growth in the economy, the sales team began traveling extensively gaining newbusiness. Because of the heavy volume, she no longer required the sales team to provide originalairline, hotel, or car rental receipts. She told them to just keep their meals under the $100 perday per diem and no receipts were required. She allowed them to use their own credit cards sothey could get the frequent flyer points. She required them to turn in a summary of the travelexpenses quarterly.Situation c. Michael Jordon is a new employee hired from Craigs List recommended by a coworker. Mike was hired as a Human Resource Assistant. Mikes first day on the job he is toldthat he should follow his own judgments when deciding how employee issues such as hiring andfiring of employees, sexual harassment, and ethical infractions should be handled.Requirements1. Identify the missing internal control characteristic in each situation.2. Identify each firms possible problem.3. Propose a solution to the problem.CategoryPointsDescriptionUnderstanding10Demonstrate a strong grasp of the problem at hand. Demonstrateunderstanding of how the course concepts apply to the problem.Analysis30Apply original thought to solving the business problem. Applyconcepts from the course material correctly toward solving thebusiness problem.Execution10TotalWrite your answer clearly and succinctly using strong organizationand proper grammar. Use citations correctly.50A quality paper will meet or exceed all of the above requirements.

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