Question

Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franchised coffee shops. Duri manager, Faith encountered the following internal control situations: 1 a. Falth caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Falth smiled and said, "I don't th bags on the right shell. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom. with Faith's method of handling this situation because she has the internal control principle of safeguardin b. Gibraltar Coffee Shop has one cash register. Prior to Faith's joining the coffee shop, each employee working on a shift would take a customer order, prepare the order. Falth made one employee on each shift responsible for taking orders and accepting the customer's payment. Other employees prepar with Faith's method of handling this situation because Faith has the internal control principle of assignment the internal control principle of segregation of duties. 1 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 ca the amount of cash sales recorded by the cash register. Faith expects each cashier to balance the drawer to the penny every time-no exceptions. with Faith's method of handling this situation because Faith has the internal control principle of segregatic

Answer 1

a.       I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. As we can see that the employee is stealing and this not a correct way to treat such a serious issue.

b.      I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility and followed the internal control principle of segregation of duties

c.       I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties.