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.

I with Jimmy's method of handling this situation because Jimmy has the internal control principle of assignment of responsibility and the internal control principle of segregation of duties.

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.

$1$ with Jimmy's method of handling this situation because Jimmy has

the internal control principle of segregation of duties.

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 shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.

$1$ with Jimmy's method of handling this situation because he has the internal control principle of safeguarding of assets.