Question

How does that internal control safeguard the assets, ensure the efficiency of business operations, and promote reliability of financial statement information in a restaurant?

Answer 1

Solution:

Establishing Internal control system in restaurants is the only steps to reduce elections like fraud and tips restaurant must have a return policy procedures with active supervisions and a system to control the the credibility then give strength to the effectiveness of the business.

There are very less number of restaurants use technology like POS registers or accounting softwares. There are many programs available in the market which provide real time management, and provide a full proof cash and credit card transaction details, send make the conditions more difficult for the employees to commit illegal activities like lifting money from the cash counter.

The system also provides control over inventory checking and order that and ensures the quantities ordered must match with quantities delivered the inventory includes specially those items which are banned like glass bottles and containers it also provide safeguard from theft which can be made by the delivery drivers.

so in general we can see that internal controls in restaurant provides effective less in business operations and also if the asset off the hook restaurant please under the internal control safeguard then their book value is equivalent to the real value that provides the reliability over financial statement information in the restaurant.