Audit Accounting Red Bluff Case

Decent Essays

1. The two biggest concerns relating to possible fraud for the motel part of the business are: a) The couple failing to record hotel guest stays in order to steal the cash paid. By not recording the hotel stay their cash reconciliations would be clear.
b) The couple has no incentive help the motel perform at a profit since they are paid at salary. Since there is a high demand for their motel, service and quality could take a significant slip without losing too much money. The first control that could be set in place is through the intake process. Mr. Fernandez can easily set in place controls that would automatically create a transaction every time a new key was created. This is assuming the doors are operated with electronic keys. The …show more content…

Fernandez to check the camera’s for stolen inventory.
Preload the menu with set meals/price. Everything should match revenue and inventory.
The Café should be separate from the motel.
All goods should be sent through Mr. Fernandez so that he can see what the couple is buying. 3. If the system automatically created a charge in the system, this would not only keep track of what rooms are available, but it would also encourage the employees to

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