Question

In one of the cases in the textbook, Swainler's Technology discovered that someone had stolen 1,400 hard drives from its computer warehouse. In order to collect on its theft insurance policy, the company had to show that the theft was an outside job. Before the insurance company paid Swainler's claim, it hired an independent investigator, who ultimately found that the hard drives were stolen and sold by Swainler's marketing manager, Frederic Boucher. Which of the following control weaknesses were present in the company?

a. Because the company was run primarily on trust, many transactions were conducted without any documentation or controls.
b. The surveillance cameras on the loading dock didn't work.
c. Background checks were required only on senior executives and accounting personnel.
d. All of the above

Answer 1

All of the above control weaknesses were present in Swainler's Technology.

Step-by-step explanation:

In this case, all of the above control weaknesses were present in Swainler's Technology. Let's break down each option:

1. Option a: The fact that many transactions were conducted without any documentation or controls indicates a lack of proper accounting practices and accountability within the company.
2. Option b: The non-functioning surveillance cameras on the loading dock indicate a lack of physical security measures to deter and identify unauthorized access and theft.
3. Option c: The requirement of background checks only on senior executives and accounting personnel suggests a lack of thorough screening and vetting processes for all employees, creating potential vulnerabilities.

Therefore, the presence of all these control weaknesses contributed to the theft of hard drives by Swainler's marketing manager, Frederic Boucher.