Case8-17-Fairfax Recreation Center

Case8-17-Fairfax Recreation Center - Recommended...

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Recommended Improvements 1 Recommended Improvements It appears that there are several problems with the controls in this Fairfax Recreation Center. One possible solution may be to install a combination of entrance ticket equipment and membership verification equipment/biometric access equipment. A primary issue is that there is not enough information available to suggest whether such equipment would benefit the company over and above their cost and maintenance. Moreover, an employee would still have to be posted at the turnstile to assist members that are experiencing difficulties with membership cards (not reading by equipment). Assistance may also be needed with the cash/ticket issue equipment. Therefore, employees could not be done away with, simply because equipment is installed. It is necessary to perform a cost to benefit analysis to establish the cost of equipment, calculate the amount of cash tickets purchased, and weigh the cost of the equipment up against potential losses from dishonest employees and accountants. This gives rise to two possible scenarios. Thus, the two scenarios will be taken into account when presenting possible solutions. Scenario 1 Scenario one takes into account that the center has relatively few cash entrants. A further assumption is that the center is a small operation, and the cost of equipment outweighs the benefit derived, and therefore is not feasible. Other controls will have to be implemented to improve overall cash security. Table 1, is constructed and based on the assumption that the cost outweighs the benefit for installing equipment.
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Recommended Improvements 2 Table 1 Recommended Improvements for Identified Control Weakness Proble m number Weakness Rationale Recommended improvements for weaknesses 1 An employee oversees access through the turnstile One employee should not be the only employee at the turnstile. What if the employee needs the bathroom? Two employees should
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This note was uploaded on 11/23/2009 for the course BSAH0LKJP5 ACC/340 taught by Professor Dorothygaliger during the Spring '09 term at University of Phoenix.

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Case8-17-Fairfax Recreation Center - Recommended...

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