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Read the following case and apply your knowledge of the five components of the 2013 COSO IC framework as well as risk, internal controls, and

Read the following case and apply your knowledge of the five components of the 2013 COSO IC framework as well as risk, internal controls, and any other Chapter 6 topics to answer the requirement.

(chapter 6 topic: Internal controls, Laws and guidance, Corporate governance,Internal control objectives (ICOs) categorization, 2013 COSO IC Components, 004 and 2017 CO,Audit trail, Separation of duties,Types of controls - preventive, detective, corrective, Evaluating controls (SOX 404)

In 2003, Mary Hansen founded the Bohotiques company with a single store in Dublin, California. Bohotiques now has 19 shops located in the triangle of Dublin, San Francisco, and San Jose, California. Hansen earned an accounting degree in college, passed the CPA exam in her first attempt, and worked for a Big 4 accounting firm for 9 years prior to opening her first store. She recently selected a state-of-the-art accounting system that connects all of her stores' financial transactions and reports.

Hansen's employees include two internal auditors who monitor internal controls and also search for ways to improve the company's operational effectiveness. As part of the monitoring process, the internal auditors take turns conducting periodic reviews of the accounting records. For instance, the company takes a physical inventory count at all stores once each year and an internal auditor oversees the process. The most senior internal auditor just completed a review of the accounting records and discovered items of concern. These were:

-Physical inventory counts varied from inventory book amounts by more than 6% at two of the stores. In both cases, physical inventory was lower.

-Two of the stores appear to have an unusually high amount of sales returns for cash.

-In nine of the stores, gross profit has dropped significantly from the same time last year.

-At four of the stores, bank deposit slips did not match cash receipts.

-One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks.

-In seven of the stores, the amount of petty cash on hand did not correspond to the amount in the petty cash account.

Question: Requirement: Talk about how Bohotiques succeeded or failed in following the components of the 2013 CosO IC framework, and how any failures identified could have resulted in the items of concern listed above.

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