Problem

Internal ControlDryden Company is an auto parts supplier.At the end of eachmonth, theemplo...

Internal Control

Dryden Company is an auto parts supplier.At the end of eachmonth, theemployee whomaintains all of the inventory records takes a physical inventory of the firm 's stock. When discrepancies occur between the recorded inventory and the physical count, the employee changes the physical count to agree with the records.

Required:

1. Whatproblems could arise as a result of Dryden Company's inventory procedures?

2. Howcould the internal control systembe strengthened to eliminate the potential problems?

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