Question
Sadie Tanner owns Do Not Leak, Inc., which is a small plumbing supply company that employs 20 workers who perform plumbing tasks and 4 office
Sadie Tanner owns Do Not Leak, Inc., which is a small plumbing supply company that employs 20 workers who perform plumbing tasks and 4 office staff. One of the office staff is TJ Henry who has been with the company since it opened its doors. During that time, he has earned the trust of the owner and has proven to be a diligent employee who often works late, occasionally comes in on weekend for no additional pay, and hasnt taken a substantial vacation in over 10 years. Instead, he staggers his vacation days throughout the year to avoid the need for a replacement and ensuring that none of the other office staff is burdened with his work. TJs primary tasks include: Responsible for POS cash and credit sales Bills the customers who purchase on credit Opens the mail and posts to AR records, and Prepares the daily cash deposits for the business. Another office worker, Renee Chou, handles ordering inventory and supplies from vendors, stocking, shipping merchandise, updating inventory records, and writing checks to vendors in payment of purchases. The third office staff member, Tripp Helms, performs the payroll (writing paychecks and recording payroll payments) and general ledger functions. Required - In a one page memo to your instructor Identify at least three risks inherent in the scenario. Make control recommendations to mitigate the three identified risks under the constraint that no additional employees can be hired.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started