12. EVALUATION OF INTERNAL CONTROLS The Never Sink Canoe (NSC) Company is a small manufacturer of high-quality canoes, pontoons, and fishing craft. It sells its products to sporting good stores throughout the northeast United States and parts of Canada. NSC began as a small family owned company that served a local market. Over the years it expanded its market through the use of seasonal sales force employees. The sales staff work on straight commission and travel extensively while taking orders from custo- mers at sporting outlets and trade shows during the water sports and fishing season. All sales are on credit and payment is due within 30 days after being billed. In late fall when the season ends, the temporary sales personnel are laid off until the fo lowing spring. approximately 50 percent of the laid-off sales staff returning the following year. l- with Employee turnover is high