Solved

BSR Inc Is the Corporate Office of a Chain of Coffee

Question 62

Matching

BSR Inc. is the corporate office of a chain of coffee shops around the United States. Dudley Baker is considering opening a franchised location with BSR's support, and has asked BSR management about potential risks and ways to address them. Several risks associated with the franchise operation and potential controls are listed below.

Match each risk with the control that will address it most effectively.

Premises:
Damage from natural disasters, such as fire or earthquake.
Food quality variances due to inconsistent preparation.
Gratuities (tips) going to the wrong server.
Lack of customers due to poor geographic location.
Raw material spoilage.
Robbery.
Running out of popular menu items.
Table servers giving away food.
Unusually high employee turnover Computerized records of cash receipts.
Responses:
Market research before opening the restaurant.
Matching customer orders with food prepared.
Monitoring order trends & purchasing raw materials based on them.
Monthly staff meetings.
Placing cash register near the door.
Standard recipes & adequate training.
Thorough emergency procedures, like an evacuation plan.
Video surveillance system near the entrance.
None of the above.

Correct Answer:

Damage from natural disasters, such as fire or earthquake.
Food quality variances due to inconsistent preparation.
Gratuities (tips) going to the wrong server.
Lack of customers due to poor geographic location.
Raw material spoilage.
Robbery.
Running out of popular menu items.
Table servers giving away food.
Unusually high employee turnover Computerized records of cash receipts.
Related Questions

Q52: List and discuss five specific internal controls

Q53: If a company has good segregation of

Q54: Internal control definitions
The text presented three

Q55: Companies can monitor the effectiveness of internal

Q56: Explain four specific risks Top Notch T-Shirt

Q57: BSR Inc. is the corporate office of

Q58: LM Enterprises provides temporary office staff to

Q59: The elements of COSO's internal control framework

Q60: Match each item with the most appropriate

Q61: Match each item with the most appropriate

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents