Courtney Linge has recently been hired as the manager of Jittery Jim's Coffee. Jittery Jim's Coffee is a national chain of franchised coffee shops. During her first month as store manager, Courtney encountered the following internal control situations:
a. Courtney caught an employee putting a case of 100 single-serving tea bags in his car. Not wanting to create a scene, Courtney smiled and said, "I don't think you're putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.
b. Jittery Jim's Coffee has one cash register. Prior to Courtney's joining the coffee shop, each employee working on a shift would take a customer order, accept payment, and then prepare the order. Courtney made one employee on each shift responsible for taking orders and accepting the customer's payment. Other employees prepare the orders.
c. Because only one employee uses the cash register, that employee is responsible for counting the cash at the end of the shift and verifying that the cash in the drawer matches the amount of cash sales recorded by the cash register. Courtney expects each cashier to balance the drawer to the penny every time-no exceptions.
State whether you agree or disagree with Courtney's method of handling each situation and explain your answer.

  • CreatedSeptember 15, 2015
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