Question 4: (12 marks) Travis Wong owns several businesses. His most recent acquisition was the Relaxation Hotel, located in Canmore. Because he is not usually at the hotel, Travis hired a manager, Shawn Shelderon, to run the hotel's operations. Travis's daughter Caitlin is currently studying accounting at university and asked her father if she could work at the hotel during the summer. He agreed and asked her to observe the operations at the hotel and report back to him at the end of her first week of work. On the first day, Caitlin reviewed a report showing that parking garage receipts had decreased during the past month Shawn has resisted the installation of any automated payment systems for the parking garage because he is worried that they are not always reliable and prefers instead the more personable approach of having someone, like his nephew Terri, at the parking garage exit to collect the parking fees in cash When a driver enters the parking garage, they get a ticket with the entry time and then they present this to Terri, who calculates the amount owed when exiting. Caitlin's second job was at the front desk working with Megan Shelderon, who is Shawn's daughter. One evening, Shawn's friends dropped by the hotel to use one of the rooms for a poker party. Caitlin noticed the following day when reviewing room cleaning reports, that even though the room was cleaned by hotel staff, no record of a cash or credit card receipt for the use of the room that night appeared on the daily room sales report. A couple of days later, Caitlin spent some time in the hotel lounge where Max Shelderon, Shawn's son, was the only bartender on duty during a very busy shift in the early evening. At that time, the lounge had a drink special with vodka on sale. Max was very busy and sometimes was unable to ring drink sales into the cash register. Caitlin also noticed that he was using vodka bottles from a box under the bar instead of the ones that were on display over the bar. The following morning when the lounge manager, who works only during the day, performed the daily count of inventory, he concluded that vodka sales were not as high as he had hoped they would be as the vodka inventory had barely fallen over the past 24 hours. Required (parts a & b), see next page: Question 4, continued a) What control activity weaknesses will Caitlin report to her father? Please list one weakness for each of Parking lot revenues: Room rentals: Bar revenues: b) What steps can the hotel take to avoid the possibility of theft/misuse/fraud in the future? Please give one step/change and explanation) for each of Parking lot revenues: Room rentals: Bar revenues