Internal controlsJimmy Pace has recently been hired as the manager of Jittery Jon'sCoffee Shop. Jittery Jon's Coffee Shop is a national chain of franchisedcoffee shops. During his first month as store manager, Jimmyencountered the following internal control situations: a. Jittery Jon's Coffee Shop has one cash register. Prior to Jimmy'sjoining the coffee shop, each employee working on a shift wouldtake a customer order, accept payment, and then prepare theorder. Jimmy made one employee on each shift responsible fortaking orders and accepting the customer's payment. Otheremployees prepare the orders.b. Because only one employee uses the cash register, that employeeis responsible for counting the cash at the end of the shift andverifying that the cash in the drawer matches the amount of cashsales recorded by the cash register. Jimmy expects each cashier tobalance the drawer to the penny every time no exceptions.c. Jimmy caught an employee putting a case of 1,000 single-servingtea bags in her car. Not wanting to create a scene, Jimmy smiledand said, "I don't think you're putting those tea bags on the rightshell. Don't they belong inside the coffee shop?" The employeereturned the tea bags to the stockroom.State whether you agree or disagree with Jimmy's method of handlingeach situation and explain your answer.
Internal controls
Jimmy Pace has recently been hired as the manager of Jittery Jon's
Coffee Shop. Jittery Jon's Coffee Shop is a national chain of franchised
coffee shops. During his first month as store manager, Jimmy
encountered the following internal control situations:
a. Jittery Jon's Coffee Shop has one cash register. Prior to Jimmy's
joining the coffee shop, each employee working on a shift would
take a customer order, accept payment, and then prepare the
order. Jimmy made one employee on each shift responsible for
taking orders and accepting the customer's payment. Other
employees prepare the orders.
b. 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 cash in the drawer matches the amount of cash
sales recorded by the cash register. Jimmy expects each cashier to
balance the drawer to the penny every time no exceptions.
c. Jimmy caught an employee putting a case of 1,000 single-serving
tea bags in her car. Not wanting to create a scene, Jimmy smiled
and said, "I don't think you're putting those tea bags on the right
shell. Don't they belong inside the coffee shop?" The employee
returned the tea bags to the stockroom.
State whether you agree or disagree with Jimmy's method of handling
each situation and explain your answer.
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