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Sunburst Technology prospered during the recent economic expansion. Business was so good that the company used very few internal controls. A recent decline in the high-tech sector of the economy brought a cash shortage. Adele Marsden, the company owner, is looking for ways to save money.
Required:
Question 1: As a consultant for Sunburst Technology, memo to convince Marsden of the company's need for a system of internal control. Be specific in explaining how an internal control system could save the company money. Include the definition of internal control and briefly discuss the characteristics of an effective internal control system beginning with competent, reliable, and ethical personnel.
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