Please answer 3 and 4 according to

1. Concern 1: Loss of revenue on books: The couple may rent the motel to people and might not register them in books, which will help them take the rental income for themselves rather than giving it to the owner.

Control: CCTV camera on the recepton to see who all enters and books a room, Every room has a saperate electricity meter, which gets a daily reading record sent to the owner

Concern 2: Risk of giving rooms for wrong reasons, like commertial activity or prostitution/drug deals etc

Control: purpose is stated while checking in the motel, ID proof is kept as a part of record from the guest

2. Concern 1: Giving out free drinks and food to the guests/friends.

Control: Let the couple manage the whole business of cafe as their own by letting them incuriing costs and have lets say 50% of their profits to them, Random visits by owner

Concern 2: Quality of food and drinks is hampered.

Control: Apart from their base pay, the couple get bonus for achieving the sales target set by the owner each month.

A longtime client, Matthew Franklin, recently entered into a new venture involving his ownership and operation of a small 18-room motel and caf located in an area of southern Utah heavily visited by tourists. He needs your advice. Matthew hired a young couple to run the motel and caf on a day-to-day basis and plans to pay them a monthly salary. They will live for free in a small apartment behind the motel office and will be in charge of the daily operations of the motel and caf. The couple will also be responsible for hiring and supervising the four or five part-time personnel who will help with cleaning the rooms, cooking, and waiting on customers in the caf, etc. The couple will also maintain records of rooms rented, meals served, and payments received (whether by cash, check, or credit card). They will make weekly deposits of the business's proceeds at the local bank. As time approaches for the business to open, Matthew is concerned that he will have little control over the operations or records relating to the motel and caf, given that the day-to-day control is fully in the hands of the couple. He lives more than five hours away, in northern Utah, and will only be able to visit periodically. The distance is beginning to make Matthew a bit nervous. He trusts the couple he has hired, but has been around long enough to know that placing employees in situations where they might be tempted to do wrong is unwise. Matthew needs your help to identify possible ways his motel and caf could be defrauded. He especially wants your assistance to devise creative internal controls to help prevent or detect fraud. REQUIREMENTS 1. What are your two biggest concerns relating to possible fraud on the part of the couple for the mold biness? For each concern, generate two or three controls that could effentively reduse risk related to your concerns. Use common sense and be creative! 2. What are your two biggest con erns relating to possible fraud for the caf bysiness? For each concern, genera two or three controls that could effectively reduce risk related to your concerns. 3. Describe the impact each proposed control would have on the efficiency of running the business. Are the controls you generated both effective and efficient? 4. Describe the potential impact of your proposed controls on the morale of the couple in charge of the day-to-day operations. How could Matthew deal with your concerns