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Gilley's Bed and Breakfast with a Kountry Kitchen John, a longtime friend, recently purchased a small seven room bed and breakfast with a restaurant to
Gilley's Bed and Breakfast with a Kountry Kitchen John, a longtime friend, recently purchased a small seven room bed and breakfast with a restaurant to the side. Gilley's Bed and Breakfast (B&B) and The Kountry Kitchen are in an area heavily visited by tourist in north Tennessee. John needs expert advice and has contacted you John lives over 400 miles away and is concerned that he will have little control over the operations or records relating to the B&B /Kitchen. He has hired a young couple to run the business on a day-to-day basis and plans to pay them a salary and allow them to live for free in a small apartment behind the B&B office. The couple will be responsible for hiring and supervising four or five part-time employees who will clean, cook and wait on customers in the restaurant. The couple will also maintain the room rental records as well as the meals served records Customers may pay for services with cash, check, or credit card and bank deposits will be made weekly John trusts the couple, but has been around long enough to know that placing employees in situations of full control can be unwise. He needs your help to identify possible ways the B&B could be susceptible to fraud and also assist him in identifying internal controls to prevent and detect fraud Required: Identify possible concerns for the B&B and generate 2 or more controls for each concern to reduce the risk. Identify possible concerns for the Kountry Kitchen location and 2 or 3 effective controls for each. Please, be creative and thorough! Be sure to incorporate the Fraud Triangle elements and techniques from the textbook. Then, describe how John can implement your suggested controls without affecting the morale of the couple in charge
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