Question

43. The Veggie-Buffet Restaurant is a downtown expensive buffet-only rest cializes in trendy vegetarian salads and soy-based meat substitutes restaurant that spe When customers Fraud Examination Theory, Practice, and Methods first enter the restaurant, they immediately take a buffet tray and a la though the buffet, selecting food items of their choice. large plate and pass The buffet is offered to all at a fixed price, and customers can ea pile on their plate, but they cannot return to the buffet line on end of the buffet line, customers are offered the option of purch drinks in the fruit juice bar, which is located past the buffet li chase the juice bar g who do not purchase the juice the blue tint. stomers as much as they they have left it. At the ne. Customers who hurontion are given a plastic glass that is tinted slightly blue. Th glaslo bar option are given the same plastic glass but without the do not purchase theen The juice in the juice bar is made from fresh fruit and fresh fruit juice but mive a good bit of water and raw sugar. Diluting the juice is necessary for cost-contrm sons, pure fresh juice would cost too tinted glass are permitted to return as often as they want for refills. On the other much to offer. In any case, those with the blu those with the clear plastic glasses are offered filtered water and ice in the same bar area. fn Greenwafer, the owner, has noticed in recent months that profits appear to down even though the customer count seems to be holding steady. Her first reactio look to the juice bar because the weekly bill for fresh fruits and juice is much hig than she would like it to be. She does not spe d a lot of time in the restaurant beca she has several other businesses, so she has to rely on restaurant employees to figure out the problem. So, Midge asked Sanahoria Hambre, her favorite shift manager, about what m causing the problem. Sanahoria had an immediate answer: "The problem is people are not paying for the juice bar but are filling their water glasses se i all the time. Just yesterday, I saw a family of eight al juice bar." That's theft," said Midge. re's not much we can do about it. We do not have the s monitor the juice bar. Most of the time the problem one of our staff does see a clear glass being used in the the customer that the juice bar is an extra charge." ruit bar, she Good" said Midge. "Now we just ned a better way to detee a. Create a simple detection system that can be u b. What do you think is the optimal role for detecti 44. Ashley Wesley is the assistant controller at the Wa can be used to solve the headquartered in Miami F n in this problem the Walitin Construc l contractors

Answer 1

1. A simple detection system that can be used to solve the juice bar problem of freeloading is to appoint a full time employee for the juice bar. An employee at the juice bar will serve as an effective control mechanism and will serve as a check for which customers are taking juice and which are not. The employee will monitor the glass type to determine whether a customer has paid for the juices or not and on that basis will provide the customer with juice or water, as the case may be.
2. The optimal role of detection in this case is preventing the customers who have not purchased the juice option from filling their glasses with juice. In a way detection here will create a better control environment which is an important aspect of internal control mechanism. The cost of the employee will be offset by the reduced bill of fresh fruits that will come down as the cases of theft at the juice bar declines and eventually gets eliminated.