The goal of this problem is to identify and implement the proper internal controls on the following scenario. Give lengthy responses to each question. Tim just recently opened a pet store. He sells pet food, toys, and everything else a pet owner needs to keep their pets happy. He hired a bunch of employees to help him run his shop. As of today he only collects cash from his customers. During business hours he keeps most of the cash in the front desk drawer. After he closes, he counts the money puts in an envelope keeps the money at his desk drawer in the back office. He keeps the back office locked unless he sends one of his employees in the back office to get supplies or cash when they run out at the front desk. At the end of the month Tim deposits the money in the bank. 1. What kinds of internal controls should Tim implement to protect the cash at his pet shop? Explain how each internal controls would protect cash. 2. Why is so important for Tim or any company to implement internal controls?
The goal of this problem is to identify and implement the proper internal controls on the following scenario. Give lengthy responses to each question.
Tim just recently opened a pet store. He sells pet food, toys, and everything else a pet owner needs to keep their pets happy. He hired a bunch of employees to help him run his shop. As of today he only collects cash from his customers. During business hours he keeps most of the cash in the front desk drawer. After he closes, he counts the money puts in an envelope keeps the money at his desk drawer in the back office. He keeps the back office locked unless he sends one of his employees in the back office to get supplies or cash when they run out at the front desk. At the end of the month Tim deposits the money in the bank.
1. What kinds of internal controls should Tim implement to protect the cash at his pet shop? Explain how each internal controls would protect cash.
2. Why is so important for Tim or any company to implement internal controls?
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