The Cuts-n-Curves Athletic Club is a state-wide chain of full-service fitness clubs

The Cuts-n-Curves Athletic Club is a state-wide chain of full-service fitness clubs that cater to the demographics of the state (about 60% of all adults are single). The clubs each have an indoor swimming pool, exercise equipment, a running track, tanning booths, and a smoothie caf´e for after-workout refreshments. The Club in Rosemont is open seven days a week, from 6:00 a.m. to 10:00 p.m. Just inside the front doors is a reception desk where an employee greets patrons. Members must present their membership card to be scanned by the bar-code reader, and visitors pay a $16 daily fee. When the employee at the desk collects cash for daily fees, he or she also has the visitor complete a waiver form. The employee then deposits the cash in a locked box and files the forms. At the end of each day the Club accountant collects the cash box, opens it, removes the cash, and counts it. The accountant then gives a receipt for the cash amount to the employee at the desk. The accountant takes the cash to the bank each evening. The next morning, the accountant makes an entry in the cash receipts journal for the amount indicated on the bank deposit slip. Susan Richmond, the General Manager at the Rosemont Club, has some concerns about the internal controls over cash. However, she is concerned that the cost of additional controls may outweigh any benefits. She decides to ask the organization’s outside auditor to review the internal control procedures and to make suggestions for improvement.Requirements:1. Assume that you are the outside (staff) auditor. Your manager asks you to identify any weaknesses in the existing internal control system over cash admission fees.2. Recommend one improvement for each of the weaknesses you identified.

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