Question

1. A cash bank is assigned to each waiter.

2. Guest checks are reviewed by the internal auditor.

3. Standard recipes are followed by preparing all entrees.

4. Payroll checks are distributed to employees by the owner.

5. Checks written to pay bills in excess of $100 require two signatures.

6. Written purchase orders are required for all equipment purchases.

7. Meat is stored in coolers at the proper temperature.

8. Cash is deposited nightly at the local bank using the bank's nightly depository service.

Required:

1. Indicate whether each control procedure is preventive (P)or detective (D), and whether it is an accounting (AC) or administrative (AD) control.

Answer 1

	Transaction	Controls	Category Of Control
1	A cash bank is assigned to each waiter	Preventive	Accounting
2	Guest checks are reviewed by the internal auditor	Detective	Administrative
3	Standard recipes are followed by preparing all entrees	Preventive	Administrative
4	Payroll checks are distributed to employees by the owner	Preventive	Administrative
5	Checks written to pay bills in excess of $ 100 requires two signatures	Preventive	Accounting
6	Written purchase orders are required for all equipment purchases	Preventive	Administrative
7	Meat is stored in coolers at the Proper temperature	Preventive	Administrative
8	Cash is deposited nightly at the local bank using the bank’s nightly depository service	Preventive	Accounting