Mark Caldwell is opening a new business that will sell sporting goods. It will initially ibe a small operation, and he is concerned about the security of his assets. He will not be able to be at the business all of the time and will have to rely on his employees and internal control procedures to ensure that transactions are properly accounted for and assets are safeguarded. He will have a store manager and two other employees who will be sales personnel and stock personnel and who will also perform any other duties necessary. Mark will be in the business on a regular basis. He has come to you for advice. Required: Write a memo to Mark outlining the procedures he should implement to ensure his store assets are protected and that the financial transactions are properly recorded. You do not have to use a memo format (To/From/Date/Subject). Instead, focus on the body of the memo to submit for homework. Required: For each of the following fraudulent acts, describe one or more internal control procedures that could have prevented (or helped prevent) the problems. a. Allie Wilder, the administrative assistant in charge of payroll, created a fictitious employee, wrote weekly checks to the fictitious employee, and then personally cashed the checks for her own benefit. b. Spencer Cooper, the receiving manager of Western Lumber, created a fictitious supplier named B\&A Building Supply. B\&A regularly billed Westem Lumber for supplies purchased. Cooper had printed shipping slips and billing invoices with the name of the fictitious company and opened a post office box as the mailing address. Cooper simply prepared a receiving report and submitted it for payment to the accounts payable department. The accounts payable clerk then paid the invoice when it was received because Cooper acknowledged receipt of the supplies. c. Katie Thomas works at a local hobby shop and usually operates the cash register. She has developed a way to give discounts to her friends. When they come by, she rings a lower price or does not charge the friend for some of the material purchased. At first, Thomas thought she would get caught, but no one seemed to notice. Indeed, she has become so sure that there is no way for the owner to find out that she has started taking home some supplies for her own personal use