Yolanda Auremar, the GM of the Sand Castle Hotel has learned that the controllers office paid an invoice for office supplies that were never delivered. She now knows that the process of purchasing all hotel supplies, verifying their delivery, accounting for them in inventory, and properly paying invoices for them is in need of a thorough review.

Questions

1. What would be other clues that the accounts payable system is in need of review?

2. Which individuals within the hotel need to be involved in this review process?

3. What would be the likely consequence(s) if you did not institute the review?