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You are hired as an external auditor for a cafe business. Through your research, you find out that payroll is considerably higher, relative to sales,
You are hired as an external auditor for a cafe business. Through your research, you find out that payroll is considerably higher, relative to sales, than it has been in previous years. It appears that the bookkeeper is paying "ghost" employees-meaning he is paying individuals who do not actually exist. What is your recommendation to address this internal control issue, if the existing practice is of any concern? Select one: a. The bookkeeper should approve all new hires and payroll is to be deposited directly into employees' bank accounts. b. A new bookkeeper should be hired. The manager should be responsible for staff schedules and regular review of payroll costs as a consistent percentage of sales. O c. daily. Any discrepancies between the cash receipts and sales are investigated by the manager immediately. d. A new bookkeeper should be hired. The head chef at the restaurant should count food supplies at the beginning of each day and should be responsible for ordering replacement food. Next page
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