In: Accounting
Henri is the owner of the “Chez Henri” Restaurant. It is not a large restaurant (78 seats). For this reason, it does not have many people on the payroll. Henri has been handling the general manager’s responsibilities and has a good friend working half a day, five days a week, to take care of such matters as bank deposits, preparing accounts payable and payroll checks, and all other routine office and bookkeeping work. Henri is not concerned about the honesty of the person, but he has learned from courses he has taken that any company, however small, needs to have some internal controls.
REQUIRED
1. Write a short report to Henri pointing out three specific areas where you believe controls might need to be implemented. For each of the three areas, advise Henri what might happen if a dishonest bookkeeper was hired and how internal control can be implemented to prevent dishonesty.
wht he mean 3 areas need to be control
Basically, internal control is the online process during the business operation, as control not only give benefit in the short period but also in the long period so every efforts are taken to put internal control in the best way as it is said theta work done bu one is independently checked by another is good sign for the internal control where pressure ca be put upon the employees not only in present position but also control for the future which gives fruitful result and having positive sign for the business environment .