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Samson Instruments Is a Rapidly Growing Manufacturer of Medical Devices

Question 249

Essay

Samson Instruments is a rapidly growing manufacturer of medical devices. As a result of its growth, the company's management recently modified several of its procedures and practices to improve internal control. Some employees are upset with the changes. They have complained that all these changes just show that the company no longer trusts them.
Required:
"Internal controls exist because most people can't be trusted." Is this true? Explain.

Correct Answer:

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Internal controls exist not because most...

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