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Assume That You Have Been Hired by a Local Coffee

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Assume that you have been hired by a local coffee shop to evaluate the internal controls of the shop and to suggest improvements.a.Describe the internal controls that are likely to be used by management to safeguard the assets of the store.b.Suggest several internal controls that might be realistically used by management to improve the current operation of the coffee shop.c.Use the audit risk model to illustrate how your reliance on internal controls would affect the substantive testwork done for the audit of the coffee shop.


Definitions:

Rorschach Inkblot Test

A projective psychological test consisting of 10 inkblots printed on cards (created by Hermann Rorschach) used to analyze a person's personality characteristics and emotional functioning.

Dream Analysis

A therapeutic technique in psychology aimed at exploring the hidden meaning and symbols within dreams to uncover underlying thoughts and feelings.

Free Associations

Encouragement for a person to express a stream of consciousness to unearth subconscious thoughts and feelings.

Principle of Equivalence

In physics, specifically in general relativity, it is the principle stating that gravitational and inertial forces are of a similar nature and often indistinguishable.

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