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Consider the following story from the December 10, 2008 edition of the Las Vegas Review-Journal:
Authorities unsealed the indictments of 15 people involved in a Eurasian gang on Tuesday, revealing an organized crime ring that raked in about $1.5 million through stolen credit cards and identity theft in the Las Vegas Valley. The suspects are facing federal charges including trafficking and possession of counterfeit devices, identity theft, production and use of counterfeit devices and fraud. [A U.S. Attorney] said some of the suspects were involved in "skimming," an act by which a person can obtain credit card information by running the card through a handheld counterfeiting device. The gang members would have people working in restaurants, bars and smoke shops who would scan a customer's credit card on a legitimate machine and then swipe it again with a counterfeiting device.
Suppose the Las Vegas Review-Journal contacted you for some feedback on the article, Prepare a response to the following questions:
a. What is internal control?
b. What type(s) of risk are indicated by this situation?
c. What internal controls would you recommend to address the risks?
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