Company is a rapidly growing start-up business. Its recordkeeper, who was hired six months ago, EXE left town after the company's manager discovered that a large sum of money had disappeared over the past three months. An audit disclosed that the recordkeeper had written and signed several checks made pay- Exercise 8-1 able to her fianc and then recorded the checks as salaries expense. The fianc, who cashed the checks but Analyzing internal control never worked for the company, left town with the recordkeeper. As a result, the company incurred an un - C10 insured loss of $184,000 Evaluate Franco's internal control system and indicate which principles of internal control appear to have been ignored