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A company comprises a chain of 94 restaurants. All food orders for each restaurant are required to be entered into an electronic device which records each food order by food server and transmits the order to the kitchen for preparation. Food servers are responsible for collecting payment for all their orders and must turn in the proceeds collected (cash, checks, and credit card receipts) at the end of their shift, which should equal the total sales value of food ordered for their ID number. The manager then reconciles the payments received for the day with the computerized record of food orders generated. All differences are investigated immediately by the restaurant manager or assistant manager. At the end of each day the cash and checks, less a standard amount of cash kept for use the next day, are deposited in a corporate bank account. Credit card receipts are directly credited to the corporate bank account by the credit card provider.
Corporate headquarters wants to establish a monitoring activity to determine if each individual restaurant is recording all its revenues and transmitting the applicable funds to corporate headquarters.
(A) What are monitoring activities?
(B) Design a monitoring activity that would achieve this assurance objective.
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