Answer Happy

Question 17 (20 points) 4 Read the case below and answer the questions at the end. Henry is a new graduate from college that has been brought into a local retailer that has been doing business for almost ten years. They have begun to open locations around the city that they are in and have asked you to make recommendations to tighten the internal controls. The accounting office is located within an hour of each of the four new store locations. The CEO has asked that the company warehouse driver picks up the sales receipts once a week and that paycheques are sent back to each location on payday. The process today is that the driver collect the daily receipts in a plastic grocery bag and bring them back to the accounting office once a week. In recent weeks, there have been receipts that have gone missing and paycheques that have become lost. One store is not located near a bank for daily deposits and the CEO has the driver picking up the weekly deposit of $6000 to bring back in a brown paper bag with the store location number written on it. The accounting department has found discrepancies between the register ribbon and the money of $10-$20 each week.
1. Understanding the overall goals for internal controls, what recommendations should be made for this small company? (Each recommendation should include a realistic control) 2. List five (5) realistic Cash Controls that could be used with a brief explanation of how each could help. 3. List five (5) realistic Internal Management Controls that could be used with a brief explanation of how each could help.