Writea letter to your client tactfully explaining why you do not consider the problem to be “a small technicality.”

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During your first audit of a new client, Capital Food Supplies, a small restaurant food supply company, you become aware of a major weakness in internal control: One employee keeps the accounts receivable and payable records, pays bills, and does the bank reconciliation each month. When you casually mention the problem to Scott Devin, the owner and general manager, he dismisses the issue. He says he trusts all his employees, has never had any problems, and can’tafford to hire another employee just to deal with such a small internal control technicality. Write a letter to your client tactfully explaining why you do not consider the problem to be “a small technicality.” Explain the possible ramifications of not dealing with the issue, both in terms ofthe audit and in terms of asset protection. Use the proper format, effective organization, and appropriate style. Invent any information you feel is necessary to make your letter complete.

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