sally Small Is The Sole Shareholder Of A Corner Store, The Small My Assignment Essay Help

Sally Small is the sole shareholder of a corner store, The Small Store Inc. She hasn’t taken a vacation in two years and is planning to take one next month. She would like to know things are being properly handled in the store before she leaves. She has asked you to observe her operations for a day and tell her if there are any problems you see or improvements you can suggest to the way the company operates with respect to internal controls. She would also like to know if there are things she is doing correctly so that she can continue to do them.

You note the following activities during the day. Sally opens the store at 9 a.m. She balances the cash from the previous day before opening. Sarah, a long-time employee, starts work at 10 a.m. and works until 5 p.m. Peter, another part-time employee, works from 4 p.m. until 11 p.m. and closes the store. He locks the cash register when he leaves. Sally, Sarah and Peter all serve customers during the day. There is only one cash register. Sally leaves the store for lunch and finishes for the day around 6 p.m. She tells you she sometimes drops back in at night to see how things are going.

Bread and milk are delivered to the store during the day and whoever is at the cash register at the time takes money from the register to pay for the products.

There is a camera that records customers at the cash register and a mirror so the person serving at the cash register can see most of the store.

a) Make a list of control activity weaknesses over cash, explaining why each is a weakness and a suggestion as to how to improve. Use point form.
b) Make a list of items that are being done correctly and why they provide good control. Use point form