The report evaluates the risk and internal control process of Adam & Co based on the case study. The purchase, payroll, and cash disbursement departments are analyzed using system flow charts. The report identifies the weaknesses of the internal control system of each department and the associated risks. The report concludes that the staff's manual engagement in making and managing reports is a major factor leading to fraud. The lack of task segregation causes the data to be less reliable and accurate, and there is not enough adequate data verification, which increases the risk of fraud activities.