Question

What internal control procedures would you recommend in each of the following situations?

1. A concession company has one employee who sells towels, coolers, and sunglasses at the beach. Each day, the employee is given enough towels, coolers, and sunglasses to last through the day and enough cash to make change. The money is kept in a box at the stand.

Short answer

Answer

On the off chance that a cash register cannot be utilized, the all-out sales worth of the towels, coolers, and sunglasses given to the employee every day ought to be calculated.

Step-by-step solution

Step-by-Step SolutionStep 1: Meaning of Internal Control

Internal controls are the systems, rules, and methods executed by an organization to guarantee the integrity of financial and accounting information, advance responsibility, and prevent fraud.

Internal control procedures

A cash register (with a locked record) ought to be utilized at the sales stand-it ought to likewise be secured to the stand. The employee should sign a receipt for the product and how much money the individual has been given. At the end of every day, the employee should be expected to return the cash and residual towels, coolers, and sunglasses equivalent to the sum taken to the stand. Possibly consider a couple of return trips, assuming that the sums are large.