Running head: INTERNAL CONTROLS

Internal Controls

Student Name:

University:
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Discussion: Internal Controls

Resolving the Issue

To eliminate any chances of partialness, the best way of approaching the issue is by

obtaining facts that will be utilized in proving the suspect right or guilty. A solid proof will be

cogent enough and will guide in the next action to be taken. The solid fact will additionally spare

the business from litigation. To get the facts needed, an investigation will be conducted which is

fixated on accumulating evidence alone and which is guided by fairness. An investigator will

work on accumulating the facts via utilizing the available resources such as the CCTV systems,

Point of Sales systems logs, or interrogating other staff members collaborating with the bartender

(Slumber, 2018). After the investigation is done, the next step would be analyzing the facts. This

should illuminate whether the bartender authentically didn’t charge some of the clients or not and

this will present the grounds for suspicion. 

After garnering enough information regarding the issue, I would proceed to interview the

bartender so as to aurally perceive his/her side of the story. The bartender should thus present the

fortifying evidence as to why he/she is censurable. Another option would be cataloging

everything and documenting every piece of evidence from documents, CCTV footage logs,

auditing financial records, among others (Clearinghouse, 2016). Assessing the situation to

determine the intention of larceny by bartender would be the next option. In every outcome of

the intention, the company policy should intervene to determine the right disciplinary action to

be taken. All along, three critical elements should be closely be monitored, the evidence

presented the company policy regarding theft and the severity of theft. 

Handling the Situation

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The situation should be left as it is for investigations and analysis of investigation reports.

The bartender should be rotated to another department or temporarily dismissed to pave way for

investigations. The issue should be evaluated while considering several factors such as the

intention of the larceny if any, disciplinary options available, history of the bartender regarding

theft, the likelihood of the bartender glomming again, etc. so as to understand the gravity of the

issue and the caliber of disciplinary action to be taken. The occurrence of a kindred issue should

be averted by enforcing policies that are zero torrent to larceny among others (Anderson, n.d). 

Firing or Retaining the Employee

To fire or retain the bartender is dependent on the evidence presented after the

investigation and/or basing the legal advice from a legal professional. If the evidence fortifies the

suspicion then the bartender may be fired due to gross misconduct else, if the reports show

mendacious incriminations, the bartender should be retained. Should the employee be guilty,

his/her contract with the company should be verbally warned, given a written reprimand, be

suspended, discharged, or taken action as per the business policy.

Recommendation to The Controller.

I would highly recommend the controller for close monitoring of the business's financial

transactions, for openness, transparency, and ethicality (Fichter, 2018). I would then recommend

close monitoring of the employee’s sales activity utilizing the point of sale system and exhort the

cost controller to report any other instance of such a case in the future. 

Conclusion

Any suspicious activities such as frequent changes in cash balances, shortages of

inventory, complaints from other staff regarding a theft from the bartender should be closely

monitored and reported. This will provide more evidence in the future. This may include close
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monitoring of employees in the lobby bar, controlling cash receipts, using informal orders,

screening employees before employment for any mischievous character, and closely monitoring

the inventory. More so, the beverage department can work closely with the security department

to ensure that all clients pay before leaving, that is, if the claim of the bartender was true.
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Reference

Anderson, J. (n.d). 5 Steps To Deal With Employee Theft. Retrieved from

https://articles.bplans.com/5-steps-to-deal-with-employee-theft/

Clearinghouse, P. R. (2016). Workplace privacy and employee monitoring. Privacy Rights

Clearinghouse.

Fichter, R. (2018). Do the right thing! Developing ethical behavior in financial

institutions. Journal of Business Ethics, 151(1), 69-84.

Sleep, C. (2018). Dealing with Employee Theft. Retrieved from

https://www.ashtonslegal.co.uk/insights/legal-news/dealing-with-employee-theft/