Comfy Travel Inc. manufactures RVs and sells them all over North America. The RV

Comfy Travel Inc. manufactures RVs and sells them all over North America. The RVs are sold directly to dealers who typically finance the purchases of RVs with their banks. Comfy Travel manufactures the RVs (that is orders the parts and assembles the RVs) only upon receiving the dealer s order. The dealers banks usually pay Comfy Travel Inc. within two weeks of shipment. In the past the demand and margins earned on RV sales have remained relatively consistent. However this year the declining cost of air travel and the increasing cost of gasoline have caused a general decline in the demand for RVs. Comfy Travel Inc. s management responded to the declining demand by offering dealers increased incentives. For example Comfy Travel offered a $1000 rebate on each RV purchase.It is now October 15 2012 and you have been assigned as the senior in charge of the Comfy Travel Inc. audit for the year ended September 30 2012. You obtained the following September 30 preliminary figures in millions of dollars:Sunita Clone was a payroll manager at Blue Sky Manufacturing Inc. who embezzled approximately $190000 in a one-year period. Sunita did this by reassigning her direct report a payroll clerk to a special project and assuming the clerk s role of processing terminated employees final paycheques. Sunita then processed two cheques in the final period the employee s regular automatically generated cheque and another cheque which was adjusted for the required last pay adjustments. Sunita distributed the adjusted paycheque to the employee and held and cashed the automatic cheque that had been inappropriately processed. Prior to Sunita assuming the clerk s role the clerk would suspend the automatic cheque processed for terminated employees and only process the adjusted manual cheque. It was then Sunita s responsibility to distribute the cheques.