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- During a recent review Baylor Bear Corporation discovered that it has a serious internal control problem. The estimate of the loss is $5 million

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- During a recent review Baylor Bear Corporation discovered that it has a serious internal control problem. The estimate of the loss is $5 million and the risk is 10% per year. Two internal control procedures have been proposed to deal with this problem. Procedure A has an annual cost $100,000 and would {educe the risk to 4%. Procedure B would cost $140,000 annually and would reduce the risk to 2%. if both procedures were implemented, the risk would be reduced to 0.5%. What, if anything, should they do

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