References:

Hout, B., (2017). Fraud, ethics, and internal controls: What's in a printed receipt?. InSAGE Business Cases. SAGE Publications, Ltd.,

1. Assess the internal controls over the sales and collection cycle based on the restaurant incident:

• Identify the parties involved in processing a customer's sales order.
• Identify the weaknesses in the sales and collection cycle observed by Mrs. Lee in the restaurant incident.
• Suggest possible internal control activities to strengthen the identified weaknesses above.

2. Assess the fraud issues of the case:

• Discuss the potential presence of the fraud triangle elements.
• Identify and discuss the potential fraud type.
• Suggest audit procedures for the suspected fraud.