Why the drawer to the penny every time-noexceptions


Tyler Kirsch has recently been hired as the manager of DarkCanyon Coffee. Dark Canyon Coffee is a national chain offranchised coffee shops. During his first month as storemanager, Tyler encountered the following internal controlsituations:

Dark Canyon Coffee has one cash register. Prior toTyler's joining the coffee shop, each employee working on ashift would take a customer order, accept payment, and then preparethe order. Tyler made one employee on each shift responsiblefor taking orders and accepting the customer'spayment. Other employees prepare the orders.

Since only one employee uses the cash register, that employeeis responsible for counting the cash at the end of the shift andverifying that the cash in the drawer matches the amount of cashsales recorded by the cash register. Tyler expects eachcashier to balance the drawer to the penny every time-noexceptions.

Tyler caught an employee putting a box of 100 single-servingtea bags in his car. Not wanting to create a scene, Tylersmiled and said, "I don't think you're puttingthose tea bags on the right shelf. Don't they belonginside the coffee shop?" The employee returned the teabags to the stockroom.

State whether you agree or disagree with Tyler'smethod of handling each situation and explain youranswer.

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Accounting Basics: Why the drawer to the penny every time-noexceptions
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