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Dunder Mifflin Paper Company maintains a petty cash fund of $1,000 managed by their non-bonded Office Administrator, Pam. The fund is replenished every 3-4 months

Dunder Mifflin Paper Company maintains a petty cash fund of $1,000 managed by their non-bonded Office Administrator, Pam. The fund is replenished every 3-4 months because the company doesnt go through very much petty cash. Pam only reconciles the petty cash when the fund needs replenishing. Every so often, Pam takes money from the petty cash fund to pay for her lunch. Her boss, Michael Scott, never notices. She puts together the petty cash report and he just signs off on the reconciliation without question. Plus, she works hard for him why shouldnt the company treat her to lunch every now and then? Required: 1. Using the fraud triangle, explain the drivers of fraud in this case. (3 marks) 2. Name three principles of internal controls that are being violated by Dunder Mifflin. (3 marks) 3. For each principle being violated, provide an internal control that could be implemented to correct the violation. (3 marks)

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