FV Corporation is a new corporation providing food services in Molino. Due to financial constraint, they hired BBMI as their outsourced accounting process. It turned out that BBMI was also hiring another accountant who prepares the financial statements for FV Corporation. It turned out that no accounting department is maintained by BBMI and all data are being summarized by one person.

During audit, it was determined that all information was incorrect. The auditor assessed that the misstatements were due to fraud or error, as the outsourced accountant is the brother of BBMIs Vice President.

Assume you are the consultant of BBMI, use Risk and Control Matrix to improve the internal controls of FV Corporation to address the risks of misstatements due to fraud or error.

In Risk and Control Matrix, it must determine potential risks and controls for the following processes only:

1. Revenue Process

2. Expenditure Process