Internal Control The Children's Place Retail Stores is a leading specialty retailer of children's merchandise, ages newborn to 10 years old. The company designs, contracts to manufacture and sells high-quality, value-priced merchandise under the proprietary "The Children's Place" brand name. As of February 1, 2011, the Company owned and operated 995 The Children's Place stores in North America and its online store, www.childrensplace.com. As a growing specialty retailer of clothing and accessories for kids, they provide their customers a high-quality, focused merchandise selection at prices that represent a substantial value relative to their competitors. Current fashion trends in a broad color palette are offered as coordinated outfits specifically designed for children. What's most important to them is keeping customers happy. Their flexible return policy allows the customers to shop risk free. Therese has been happily married for thirteen years. She is the mother of one boy and two girls. She attended community college for about two years. She did not like it at all so she decided to look for a job and stop going to school. She worked as a sales associate for companies like Charlotte Ruse and Gap. At the Children's place she started off as a seasonal sales associate. It took Therese about five years to work her way up the ladder from being a sales associate to being a store manager. Therese was the former store manager of The Children's Place in the Santa Anita mall. She was offered the opportunity to become store manager of a high volume store located in the Glendale Galleria. Her long term goal is to become district manager and being in charge of a high volume store is a good challenge to show the company that she is more than capable of meeting as well as exceeding their expectations.
1. Name, Title and number of years working with that current company? Therese, Store Manager, Ten Years. 2. What is the total number of years they have been working in that specific field of specialty? She has been store manager for the last five years. 3. Do they use a computer based accounting system or do they do their accounting manually? They use computer based accounting. 4. Does the accountant/bookkeeper handle all of the accounting duties; if not, who else does? She only handles the bank deposits, their corporate offices handle everything else. 5. Does the company have a security system covering the office/building protecting the company's assets? Do they use any other forms of security? The company has surveillance cameras throughout the store. The clothes that is worth more than $17.50 is equipped with a security tag. 6. Does the Human Resources Dept. do background checks on new hires, and do they require bonding for personnel in sensitive positions? Human Resources does background checks on each individual being considered for a position. they do not require bonding for personnel in sensitive position. 7. Do they have strong separation of duties? The Children's Place does not have strong separation of duties. Only the managers are allowed to approve any transaction or decision. In the store there is one manager and two assistant managers. They are in charge of creating source documents as well as entering data, and preparing performance reports. The managers are the only ones that handle cash when it is not in the register. All employees are able to handle tools, inventory, and customer checks. They are not required to write checks on behalf of the store. In the morning the manager and one store employee make the cash deposit and are required to sign the ledger confirming that the amount matches. When employees need change they sign it off. When ending a shift they count the money with the manager to determine if their register is balanced, under or over and sign it off. 8. Do they maintain accurate records of all assets? The