The Spur Corporation, a public company, founded by Allen Ambor in 1967, has become one of South Africa’s most renowned franchises4. With approximately 270 outlets in South Africa and 39 internationally, Spur continues to dominate the casual dining industry3. This may be attributed to its implementation and use of specific internal controls and audit procedures in majority of its restaurants. (Wild Eagle Spur in Ruimsig will be used as the main source of information in this report).
• Internal Controls
The purpose of internal controls of Spur is to regulate employee compliance policies, safeguard assets of the business, to ensure that the use of resources is effective and efficient and that concepts enshrined in the Code of Ethics are upheld …show more content…
Regular advertising of the franchise as family-orientated has established Spur as one of the foremost family restaurants and encouraged consumers to support Spur products. With regards to stock control, Wild Eagle Spur’s locking of back stock, i.e. the big fridges in the kitchen, discourages the likelihood of theft by only allowing authorised personnel i.e. the kitchen manager to have access to majority of the inventory. In addition, Wild Eagle Spur’s inclusion of managers in ownership motivates them to ensure achievement of objectives as they will benefit financially from increased profits. By ensuring kitchen staff and waiters are skilled and trained; Wild Eagle Spur reduces the possibility of customer …show more content…
In order to ensure reliability of the finances, these statements are prepared under the supervision of Ronel van Dijk, CA(SA) (Chief Financial Officer) and an internal audit will take place3. These internal auditors are appointed by the Audit Committee who are also responsible for ensuring that the internal auditors function independently and have the necessary authority and resources to discharge their duties3. For Wild Eagle Spur, the internal audit is conducted by someone from Spur’s head office in Cape Town. They receive two reports per month; one of these being an Operational Report. If the restaurant’s audit rating is below 68% then they have ten days to rectify the products or paperwork in question. If they fail to do so then the restaurant’s Indian Featherhead is taken away and they will no longer be considered as part of the Spur franchise. This entire process is overseen by the Audit Committee3.
An internal auditor assesses the effectiveness of the risk management and internal control of the business5. The purpose of an internal audit is either to provide assurance to management if risk is being controlled adequately or to consult with management and provide recommendations to improve inadequate control of risk5. Whether positive or negative, the findings of internal auditors are recorded in a report and presented to senior management and the Audit
• Internal Controls
The purpose of internal controls of Spur is to regulate employee compliance policies, safeguard assets of the business, to ensure that the use of resources is effective and efficient and that concepts enshrined in the Code of Ethics are upheld …show more content…
Regular advertising of the franchise as family-orientated has established Spur as one of the foremost family restaurants and encouraged consumers to support Spur products. With regards to stock control, Wild Eagle Spur’s locking of back stock, i.e. the big fridges in the kitchen, discourages the likelihood of theft by only allowing authorised personnel i.e. the kitchen manager to have access to majority of the inventory. In addition, Wild Eagle Spur’s inclusion of managers in ownership motivates them to ensure achievement of objectives as they will benefit financially from increased profits. By ensuring kitchen staff and waiters are skilled and trained; Wild Eagle Spur reduces the possibility of customer …show more content…
In order to ensure reliability of the finances, these statements are prepared under the supervision of Ronel van Dijk, CA(SA) (Chief Financial Officer) and an internal audit will take place3. These internal auditors are appointed by the Audit Committee who are also responsible for ensuring that the internal auditors function independently and have the necessary authority and resources to discharge their duties3. For Wild Eagle Spur, the internal audit is conducted by someone from Spur’s head office in Cape Town. They receive two reports per month; one of these being an Operational Report. If the restaurant’s audit rating is below 68% then they have ten days to rectify the products or paperwork in question. If they fail to do so then the restaurant’s Indian Featherhead is taken away and they will no longer be considered as part of the Spur franchise. This entire process is overseen by the Audit Committee3.
An internal auditor assesses the effectiveness of the risk management and internal control of the business5. The purpose of an internal audit is either to provide assurance to management if risk is being controlled adequately or to consult with management and provide recommendations to improve inadequate control of risk5. Whether positive or negative, the findings of internal auditors are recorded in a report and presented to senior management and the Audit