Question

The manager of a restaurant was responsible for making a nightly deposit to the bank. He decided he was tired of his job and took the cash receipts from a very busy Saturday night and ran away to France. The restaurant lost several thousand dollars. Which of the following control plans would address this control failure? a) Rotation of duties b) Personnel termination procedures c) Fidelity bond d) Operations run manuals e) Program change controls

Answer 1

The control plan that would address the control failure of the restaurant manager running away with cash receipts is a fidelity bond, which provides insurance coverage for losses caused by employee dishonesty.

Step-by-step explanation:

The control plan that would address this control failure is c) Fidelity bond. A fidelity bond is a type of insurance that protects businesses from financial losses caused by employee dishonesty, such as theft or fraud. In this case, if the manager of the restaurant ran away with the cash receipts, a fidelity bond would provide financial compensation to cover the lost money.

Fidelity bonds are designed to protect businesses from financial loss due to employee dishonesty. They are purchased by the employer and cover the actions of employees who handle money or other valuable assets. A fidelity bond would provide the restaurant with the necessary funds to recover from the loss caused by the manager's dishonesty.

Other control plans mentioned, such as rotation of duties, personnel termination procedures, operations run manuals, and program change controls, may also be important in preventing control failures, but they may not specifically address the situation described in the question.