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Question: lydia jones is the administration manager of a tennis club...

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Lydia Jones is the administration manager of a Tennis Club in North West Sydney. Lydia’s primary duty is to accept payment for tennis tournaments conducted at the venue.  Members can pay by cash only and often members prepay for tournaments for up to 9 months in advance. Lydia also takes payment for tennis lessons on behalf of a local tennis coach.  At times the office is so busy that Lydia is unable to issue receipts but assures members that their accounts will be credited correctly.  

On tournament days Lydia also accepts cash for food and beverage purchases as well as goods purchased from the tennis shop, such as balls and grips as well as last minute tournament entries. Lydia’s teenage daughter Shona, often assists her in the office especially on busy tournament days. 

Lydia is responsible for banking cash takings and does this on her way home. As the tennis club and tennis coach’s offices are within the one building, this system has worked quite well.  Recently though the tennis coach has noticed a general decline in his cash receipts although his tennis lessons are increasing.

 

Required:

Review the internal control environment in this restaurant by reference to fiveprinciples of internal control. (5 Marks)

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