I need help answering these questions APPLY YOUR KNOWLEDGE Serial Case LO 3 C4-51....
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APPLY YOUR KNOWLEDGE Serial Case LO 3 C4-51. (Learning Ohjective 3: Analyze internal controls in place at a restaurant) Note: This case is part of The Cheesecake Factory serial case contained in every chapter in this textbook The Cheesecake Factory must implement and enforce an effective internal control system to both comply with financial reporting regulations and protect its assets. Let's look at a descrip- tion of a typical day for a server at a Cheesecake Factory restaurant Each shift starts with $250 cash in the cash register. Upon arriving and starting a shift, a desig nated server counts the cash in the cash register and records the amount of cash and the time If the count entered does not match what the computer system has as the current cash level ($250), the manager must record an explanation before proceeding The server is now ready to begin his or her shift and start waiting on customers. When taking a customer's order, the server writes the menu items ordered on an order ticket. After leaving the table, the server then enters the order into the computer system. The kitchen receives the order from the computer system once it is entered. No food or beverages can be produced until the order is entered into the computer systenm When the order is ready, the kitchen staff marks the order as complete in the computer system and the server is notified that the order is ready. The server then picks up the food and takes it out to the customer. Once the diners are finished eating, the server clears the table, prints the check from the computer system, and brings the check to the table If a price adjustment is necessary due to an error, the server must get a manager's approval to override the price in the computer system. Prior to authorizing an override, the manager visits the table to speak with the customer to ensure the person is satisfied. At the end of the shift, the cash drawer is reconciled and set to equal the amount needed at the start of the next shift, $250. The manager counts and reconciles the drawer in the presence of another employee. All cash collected during the shift, less the $250, is removed from the regis ter and taken to the bank for deposit by the manager The computer system sales totals for the shift are reconciled with the cash deposit by an accounting staff member in The Cheesecake Factory's headquarters each day. Any discrepan cies trigger a phone call from headquarters and a possible investigation of that restaurant. Requirements 1. Identify the internal controls present in this situation 2. Which asset do the controls primarily protect
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