The owner of a Seaview hotel based in Durban, Kwazulu Natal, has implemented a new internal control
Question:
The owner of a Seaview hotel based in Durban, Kwazulu Natal, has implemented a new internal control system for sales. Employees enter all pre-numbered customer bills into the cash register, and at least once a day, the bookkeeper Melinda, batches the sales dockets, lists them on a deposit sheet, and makes a related bank deposit. The owner then matches the total on the deposit sheet with the amounts shown in the stamped deposit book. After five months the owner then realises that the bookkeeper Melinda, stole a portion of each day’s cash receipts by omitting some of the cash sales bills and pocketing the corresponding amounts.
Required: Identify the weaknesses in the sales process as implemented by the owner and discuss the controls the owner should have implemented to prevent and detect the fraud of the bookkeeper Melinda.
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley