LuxStay Spas is a well-established spa chain with multiple properties across Ontario, including high-traffic tourist areas like Niagara Falls, Toronto, Muskoka, and the Thousand Islands region. The company has experienced rapid growth over the past few years, expanding its services to include high-end boutique accommodations and gourmet restaurants in addition to its traditional spa services. LuxStay Spas' revenue streams are diversified, with significant contributions from accommodation bookings, spa treatments, and restaurant services. While most transactions are processed electronically, a notable portion of transactions, especially tips and some on-site spa services, are handled in cash. Use frequently four times in solution The financial operations of LuxStay Spas are centralized at the head office in Niagara Falls. However, given the expansion and geographical spread, each local manager at the various locations has been granted authority to manage day-to-day transactions, including petty cash, local purchasing, and staffing decisions. Recent internal reviews have suggested inconsistencies in the handling of cash and documentation of transactions at different locations. Required: 1. (2 marks) Discuss two (2) audit challenges at LuxStaySpa.

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Cash Handling and Documentation Inconsistencies One significant audit challenge at LuxStay Spas is e... View the full answer