Moyer Instruments Is a Rapidly Growing Manufacturer of Medical Devices

question 104

Essay

Moyer 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.

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Definitions:

Foreign LLPs

Limited liability partnerships established in one jurisdiction but registered to do business in another jurisdiction, often with different legal implications.

Distribution

The process of delivering or spreading goods, services, or financial assets from a central point to multiple recipients or locations.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who contribute capital and have limited liabilities.

Partnership's Liabilities

The financial obligations or debts that a partnership entity is responsible for.