Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema halls. The standard procedure requires Rafi to tear the tickets, give one-half to the customer, and keep the other half for record. In order to control cash receipts, the manager will compare each night’s cash receipt with the number of ticket stubs on hand. Identify the internal control weakness in this situation. How can this situation be improved?
Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema halls. The standard procedure requires Rafi to tear the tickets, give one-half to the customer, and keep the other half for record. In order to control cash receipts, the manager will compare each night’s cash receipt with the number of ticket stubs on hand. Identify the internal control weakness in this situation. How can this situation be improved?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1QY
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Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema
halls. The standard procedure requires Rafi to tear the tickets, give one-half to the
customer, and keep the other half for record. In order to control cash receipts, the
manager will compare each night’s cash receipt with the number of ticket stubs on hand.
Identify the internal control weakness in this situation. How can this situation be
improved?
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