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Sebastian's Coffee Shop Makes and Sells Specialty Coffee Drinks, Sandwiches

Question 24

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Sebastian's Coffee Shop makes and sells specialty coffee drinks, sandwiches and pastries. Several risks associated with the shop's operations and several internal controls are listed below . Match each risk with the internal control most likely to reduce it. Use each internal control only once.

Premises:
Computer viruses
Damage from flood, fire or earthquake
Incorrect change given to a customer
Incorrectly prepared drinks
Insufficient inventory quantities
Power failure
Robbery
Spoiled food
Theft of cash by employees
Theft of inventory by employees
Responses:
Backup electrical generators
Cash registers
Insurance
Monthly bank reconciliation
Placing orders when goods reach a specific level
Proper storage conditions
Software
Video monitoring systems
Video surveillance and alarm systems
Worker training

Correct Answer:

Computer viruses
Damage from flood, fire or earthquake
Incorrect change given to a customer
Incorrectly prepared drinks
Insufficient inventory quantities
Power failure
Robbery
Spoiled food
Theft of cash by employees
Theft of inventory by employees
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