Reference no: EM133088760

Question - Veggie Frenzy is a smoothie bar in Winnipeg. The smoothie bar operations are as follows: The smoothie bartenders are responsible for preparing inventory orders to ensure they have all the necessary ingredients. The bartenders enter the purchase orders on the computer, which goes directly to the Supplier without needing any manager approval.  The bartender is responsible for verifying that the inventory is received and letting the manager know it can be paid for.

Every night the cash from the register is counted by a bartender then the manager re-counts it and places it in their unlocked desk drawer.  The bartender records the cash balance on a paper form and the manager signs the form and files it once reviewed. Every morning a bartender puts some cash in the register to make change and takes the excess cash to the bank to make a deposit. The manager confirms the cash amount and the deposit slip are correct. They make the deposits in the morning during daylight when they feel it is safer.

Once a week Veggie Frenzy performs an inventory count on Sunday night when the store is closed. The inventory count is supposed to be completed by one bartender and one manager to ensure accuracy. The managers hate staying late on Sunday, so they always just let the bartender complete the inventory count alone. Monday morning, the managers sign the inventory count form.

Required - In your own words, identify three control weaknesses in the above situation, explain the problems that could occur as a result of each of these weaknesses, and provide a recommendation to correct each control weakness.