RECOMMENDED!!You have just been hired as an accountant

  

You have just been hired as an accountant of a small “mom and pop” store with about 15 employees. The owners Mr. and Mrs. Brown started the business many years ago and the company has a policy of accepting only cash transactions for sales, paying suppliers in cash, paying store expenses in cash and paying employees’ wages in cash by cashing their payroll checks for them. Also, employees submit their timesheet in a handwritten note to their supervisor showing their work start time, lunch hours taken, overtime hours worked and end of daytime.Please discuss the inherent risks of conducting business operations in this manner and what kind of internal controls you will implement to prevent these risks. Also, discuss potential loss of sales income by accepting only cash.

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