The management of this restaurant will be able to identify the sequence's owner and find
out what happened if a check goes missing at the end of the day thanks to the particular
method used. More susceptible is a smaller company. The owner needs to evaluate and
confirm all the company's financial information. Small businesses are often more
enjoyable to work for, but this also makes them more vulnerable to internal theft (Wells,
2003). To identify problems with the pre-numbered sequence codes, this business should
do more inspections of its current operations. All staff could benefit from fraud detection
and training. As a result, people would be equipped with the knowledge necessary to spot
fraud and know what to do in such a situation. I wouldn't suggest taking an alternative
course of action if the pre-numbered method for this business is working. The owner
should also be checking the pay stubs following the manager, so there shouldn't be a
significant problem or need to adjust anything. There may be a higher risk of fraud if
internal controls are implemented in this company. The sequence numbers might be
altered or recreated by a worker if an electronic system was used to streamline the
procedure. There is currently no simple way to modify the paper copies. If one is absent or
there are indications that the material has been altered, it will be apparent. This means that
bringing an electronic version to the restaurant could raise the risk of fraud but it can also
keep track of inventory if all purchases is entered in a POS system. Pos systems keep track
of all transactions, voids, refunds, ect.
References
Wells, J. (2003). Protect Small Business. Journal of Accountancy. Retrieved from
http://www.journalofaccountancy.com/issues/2003/mar/protectsmallbusiness.html
Romney, M., Steinbart, P., Summer, S., & Wood, D. (2021). Accounting Information
System, 15th edition. Pearson Education.
