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of further wealth an Eccounting problem Process c. You are a practicing accountant with Young & Young Pty Ltd, a regional accounting firm offering a range of services to local clients. Your client Bear & Bull Pty Ltd (B&B) are a retail technology business selling hardware and software to individuals and businesses. B&B had an incident some years ago, where an employee was stealing mobile phones and selling them to his friends. Henry, a director and owner of B&B, discovered this and promptly fired the employee. Consequently B&B have spent considerable time and money in developing, implementing, and refining their internal controls over several key accounting areas. Recently Henry discovered anomalies in accounts receivable and some gift cards were missing from inventory. It looks to be a potential case of fraud involving misappropriate by at least two staff. Nosco Henry was annoyed and indicated, "we spent considerable money four years ago updating internal controls to ensure issues like this did not occur. What's the point in going to all that expense, if employees get around it anyway?" How would you respond to Henry's concerns? Consider the following points in your response: i. Why are internal controls important even though they do not always work? (1mark) ii. What are two (2) key area's B&B should consider in strengthening their internal controls? Why are these important? (2 marks) iii. How could they improve the effectiveness of controls over these key area's mentioned in (iii)? (1 mark) marks

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