Consider an agribusiness in southern Alberta who has a…

Question Answered step-by-step Consider an agribusiness in southern Alberta who has a…  Consider an agribusiness in southern Alberta who has a manufacturing plant that processes potatoes to make French fries, hash browns, and potato chips, which are then sold to grocery stores and wholesalers under their own brand, MacTavish. The agribusiness objectives are to have an adequate rate of return on investment (ROI) and a sustainable business through good relationships with local potato growers and use of technology to enable the agribusiness to be a low-cost producer. Apply the ERM framework to do the following:1. Identify three events that could negatively affect the achievement of any of these objectives (these should be different than any identified in (c) below) 2. Assess the likelihood and magnitude of consequences of each event should it occur. Indicate an appropriate risk response from the four options listed on P. 139 of the course pack 3. MacTavish has identified the following situations of concern.  For each one, identify one or more internal controls you would recommend to address the situation, and note whether each control is preventive, detective, or corrective Note that various answers are possible – I’ll be focused on whether what you’re suggesting is feasible, and whether you classified it correctly as preventative, detective, or correctiveImage transcription textChapter 13 Accounting Information Systems and Internal Controls 373 For example, an inherent risk of afast-food corporation is a high number of competitors in the industry. Control risk is the threat that errors orirregularities in the underlying trans- actions will not be prevented, detected, and corrected by the… Show more… Show more Potatoes are being stolen by receiving dock personnel. The receiving clerk claimed the potatoes were actually sent to the warehouse, but the warehouse clerk didn’t record them properlyWriting off a customer’s accounts receivable balance as uncollectible to conceal the theft of subsequent cash collections. Entering of a warehouse worker’s salary into the payroll system as $180 an hour, rather than $18 an hour.Entering the customer ID of a major customer for an order as 43558 instead of 43358.  The mis-entered ID did not exist in the system, resulting in the order sitting in the warehouse instead of being shipped.Some orders have been lost because of software crashes wiping out transactions recorded that day. Business Management Project Management MGT MISC Share QuestionEmailCopy link Comments (0)