Your firm has been hired by a local ballpark vendor supply company, Dogs N Thangs, to perform an audit. Soon you become aware of a major internal control problem: One employee keeps accounts receivable and payable records, pays the bills, and does the bank reconciliation each month. When you mention the problem to Buster Gutt, the owner and manager, he tells you that he trusts all his employees, has never had any problems, and cant afford to hire another employee to deal with a technicality small as this one.

Write a letter to your client explaining why this problem is more than a small technicality. Clearly explain the ramifications if the issue is not handled, both in terms of the audit and asset protection. Invent any information you think is necessary to make the letter complete.

A successful letter will:

Use proper block format, including headings, spacing, an introduction and closing

Demonstrate effective organization for clarity

Completely explain the control issue and how it might be resolved

Employ an appropriate tone

Be error free and concise