Question;Discussion #4: Internal;Controls;The following is an;excerpt from a conversation between two sales clerks, Craig Rice and Jill;Allen. Craig and Jill are employed by Ogden Electronics, a locally owned and;operated electronics retail store.;Craig;Did you hear the news?;Jill;What news?;Craig;Kate and Steve were both arrested this morning.;Jill;What? Arrested? You're putting me on!;Craig;No, really! The police arrested them first thing this morning. Put them in;handcuffs, read them their rights -- the whole works. It was unreal!;Jill;What did they do?;Craig;Well, apparently they were filling out merchandise refund forms for fictitious;customers and then taking the cash.;Jill;I guess I never thought of that. How did they catch them?;Craig;The store manager noticed that returns were twice that of last year and seemed;to be increasing. When he confronted Kate, she became flustered and admitted to;taking the cash, apparently over $10,000 in just three months. They're going;over the last six months' transactions to try to determine how much Steve;stole. He apparently started stealing first.;Suggest appropriate;control procedures that would have prevented or detected the theft of cash.
Paper#52825 | Written in 18-Jul-2015Price : $19