You have recently taken over the role of the Chief Financial Officer of GT Gold Chasers Ltd. (GT). GT is a junior mining company that is hoping to hit it big with their next mining venture. You work out of GTs head office in Vancouver, British Columbia. GT has got a reputation in the industry for being quick to act, and the management team are known for pushing the envelope to get results. There has been a high turnover of people in the last two years, and the current team are mainly new to the job. During your first few weeks on the job, you have noticed a few things in the office. A couple of examples of these are as follows: Your assistant staff accountant, Stella Monibag helps you with the preparation of the accounting financial statements for the company. Stella spends her days reconciling the bank accounts of the company on a daily basis. This is great, because you need to know how much cash GT has available to it at all times. Once she has reconciled the accounting general ledger to the bank statement, she prepares all the cheques for the new bills that needs to be paid. You have the authority to sign the cheques, but when you are out of the office, Stella is also able to sign these cheques or approve payments on your behalf. Stella keeps the cheque book on her desk so that she doesnt lose it easily. Once you have approved a payment, Stella will access the company accounting system to enter the transactions in the general ledger. Recently the company started to pay some larger invoices to vendors that you have never really heard of. One the vendors, SM Consultants Inc. provided printing services, a piece of furniture and six hours of printing consulting. These were not expected costs, but you are new to the office, and you figure that it will probably sort itself out later. 37.) Choose the best answer: One suggested improvement to the internal control over cash would be: a.) Stella should have her cheque signing authority revoked. b.) Stella could provide a list of cheques prepared to you every week and compare this to the cheques prepared. c.) You could review the bank reconciliation prepared by Stella. d.) Both B and C. 38.) Choose the best answer: What is the internal control principal being violated with Stellas responsibilities? a.) Segregation of duties b.) Internal Verification c.) Both A and B. d.) None of the above. 39.) Choose the best answer: What is a possible internal control solution to managing the issues around SM Consultants Inc.? a.) Agree the shipping package to the invoice b.) Ask for a copy of the invoice details for services rendered c.) Both A and B. d.) None of the above 40.) Choose the best answer: From the perspective of the Fraud Triangle, what risk factors are present? a.) Opportunity Risk b.) Rationalization Risk c.) Financial Pressured.) None of the above