Identify the Internal Control weaknesses over Cash receipts and payments business and finance homework help
Read the following vignette.
Sorry, Inc. manages food concessions at local event venues. As many as five people work each concession area with two cash registers at each location. When the concession closes, a worker takes the cash drawers to a central location where the cash is counted by the main bookkeeper. There are too many cash drawers to reconcile, but the bookkeeper does try to match the receipts for the evening with the cash register tapes if employees bring the tapes. Since the sports events and concerts can last late into the evening, the bookkeeper often cannot deposit the money in the bank until the following morning (or sometimes a few mornings later if the event occurs on a weekend). Sorry pays the sports venue a percentage of the gross receipts. The sports venues often request cash payments, so the bookkeeper usually just pays from the cash receipts from the event.
Sorry, Inc. also outsources the parking concession. Their agreement is to pay Sorry a percentage of the gross receipts. These payments are usually made by check and are sent to the attention of the bookkeeper. The bookkeeper reconciles the payments to the reported receipts, and then deposits the checks.