INTERNAL CONTROL STORY Lydia Pink, a single person with no known sources of outside income, has been a trusted employee of Stone Products Company for 15 years. She performs all cash-handling and accounting duties, including opening the mail, preparing the bank deposits, accounting for all aspects of cash and accounts receivable, and preparing the bank reconciliation. Her fellow employees marvel at her hard working attitude, because she never seems to take a day off. Additionally, when the owner, Mr. Stone travels on business, Lydia handles almost all of his managerial duties. Lydia recently purchased a Lexus automobile, and a new home in Bellevue. Mr. Stone wonders how she can afford these luxuries on her salary. Consider the facts of the story with the following internal control procedures: 1. Establishment of Responsibilities 2. Segregation of Duties 3. Physical, Mechanical and Electronic Controls 4. Independent Internal Verification 5. Documentation Procedures 6. Other Controls (Bonding, requiring vacations, job rotation, etc. What should Mr. Stone do to improve the internal control at Stone Products