Client & Auditor Concerns: Procedures to obtain an understanding or internal control
Not what you're looking for?
Recently, while eating lunch with your family at a local cafeteria, you observe a practice that is somewhat unusual. As you reach the end of the cafeteria line, an employee asks how many persons are in your party. He then totals the food purchases on the trays for all your family and enters the number of persons included in the group. He hands you the receipts and asks you to pay when you finish eating. Near the end of the meal, you decide you want a piece of pie and coffee so you return to the line, select your food, and again go through the line. The employee goes through the same procedures, but this time he staples the second receipt to the original and returns it to you.
When you leave the cafeteria, you hand the stapled receipts tot the case register operator, who total the two receipts, takes your money, and puts the receipts on a spindle.
Problem
a) What internal controls has the cafeteria instituted for its operations?
b) How can the manager of the cafeteria evaluate the effectiveness of the controls?
c) How do these controls differ from those used by most cafeterias?
d) What are the costs and benefits of the cafeteria's system?
Purchase this Solution
Solution Summary
When you leave the cafeteria, you hand the stapled receipts tot the case register operator, who total the two receipts, takes your money, and puts the receipts on a spindle. The solution considers this question in 4 parts.
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.