You have just purchased the 40-room Eagle Ridge Motel and the attached restaurant. It is located in a remote part of your state approximately a 5-6 hour drive from your home. The motel is a destination for many tourists in your state because great hiking, kayaking, and wildlife surround it. You eventually would like to live near the motel, but for now you are planning to stay in your current job in the city and visit the motel when time allows--mostly on the weekends. You hired a young brother and sister team to run the motel and restaurant and will pay them a monthly salary. The young couple will be responsible for hiring, training, and supervising the 5-6 part-time employees, who will cook, clean, and help customers at the motel and restaurant. The couple will also be responsible for keeping the books and records for the motel and restaurant and will also prepare the deposits and pay invoices.
You are concerned about the financial and operational controls within the business since you will only visit periodically. You trust the young brother and sister but also do not want to put them in situations where they will be tempted to commit fraud.
In your post, outline your general concerns and the areas you think are most susceptible to fraud. Be sure to answer the following questions:
What are your two biggest concerns relating to possible fraud for the restaurant part of the business? For each concern, generate two or three controls that could effectively reduce risk related to your concerns. Use common sense and be creative!
What are your two biggest concerns relating to possible fraud for the motel part of the business? For each concern, generate two or three controls that could effectively reduce risk related to your concerns. Use common sense and be creative!
The greatest concerns:
To guarantee appropriate instalment accumulation, I recommend Francisco actualize a Point of Sale (POS) framework. It will diminish money instalments gathering and give a paper trail exchange. Likewise, Francisco can coordinate the POS with a bookkeeping software to send out POS exchanges to make reports and to look at deals exercises for basic leadership.
Current bookkeeping programming survey to confirm on the off chance that it is a la mode. Something else, put resources into one. Quickbooks and Sage are among the most well known bookkeeping programming for little and medium size business. The bookkeeping programming will enable the accountant to record exchanges speedily and to run reports for basic leadership. Additionally, Francisco can have remote access to bookkeeping records whenever and anyplace.
2. Enabling loved ones to eat for nothing or at a limited rate
Reconcile server/server records of dinners presented with the record of meals cooked by the culinary specialists
Give all clients receipts and intermittently call clients to guarantee that what they were charged are what the records reflect. There ought to be a sign put at the front to illuminate clients to call Matthew for a $10 blessing endorsement and free feast on the off chance that they don't get a receipt.
Keeping and delivering false records that don't demonstrate the genuine execution of the bistro
Establish arrangements and systems that require great record keeping.
Occasional visits where Matthew can audit records and costs.
One concern would be misappropriation of benefits. The couple that is running the motel and bistro are accountable for everything. It is anything but difficult to take cash or different things that have a place with the proprietor. Right now, they are just going to make stores week after week. This builds the shot of theft. The other concern is that the couple are responsible for all enlisting for the business. They have thepower to contract and fire anybody. The couple could enlist companions that helped them take things or theycould control workers if they get some answers concerning the extortion. ControlsSome of the controls that can be set up are:Not giving only one individual a chance to record exchanges and accommodate accountsOnly one individual ought not deal with money and confirm depositsNo one can compose check to themselves.Putting these controls set up will be troublesome in light of the fact that there isn't numerous individuals that work at the motel and bistro. They would need to ensure there is no less than two individuals accessible consistently with the end goal to keep the every day exchanges recorded. The couple can't confirm each other's exchanges. There would should be an alternate individual accessible to do the twofold checking. Any cash got ought to be saved day by day rather than week by week. The proprietor ought to likewise audit spending plan to real reports on a month to month premise and after that research any distinctions.
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