Internal controls The following is an excerot from a conversation between two salesclerks,Jean Moen and Sara Cheney.Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store. Jean:Did you hear the news? Sara: What news? Jean:Neal and Linda were both arrested this morning. Sara:What?Arrested?YOu're putting me on! Jean:NO,really!The polic arrested them first thing this morning.Put then in handcuffs,read then rights-the whole works.It was unreal! Sara: what did they do? Jean:Well,apparently they were filling out merchandies refund forms for fiction customers and then taking the cash. SAra: I guess i never thought of that.How did they catch them? Jean: The store manager noticed that returns were twicw that of the last year and seemed to be increasing.Whan he confronted Neal<he became fkustered and admitted to taking the cash,apparently more than $9,000 in just three months.They're going over the transactions of the last six months to try to determine hoe much Linda stole.She apparently started stealing first. Suggest appropriate control procedure that would have prevented or detected the theft of cash.
Internal controls
The following is an excerot from a conversation between two salesclerks,Jean Moen and Sara Cheney.Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail store.
Jean:Did you hear the news?
Sara: What news?
Jean:Neal and Linda were both arrested this morning.
Sara:What?Arrested?YOu're putting me on!
Jean:NO,really!The polic arrested them first thing this morning.Put then in handcuffs,read then rights-the whole works.It was unreal!
Sara: what did they do?
Jean:Well,apparently they were filling out merchandies refund forms for fiction customers and then taking the cash.
SAra: I guess i never thought of that.How did they catch them?
Jean: The store manager noticed that returns were twicw that of the last year and seemed to be increasing.Whan he confronted Neal<he became fkustered and admitted to taking the cash,apparently more than $9,000 in just three months.They're going over the transactions of the last six months to try to determine hoe much Linda stole.She apparently started stealing first.
Suggest appropriate control procedure that would have prevented or detected the theft of cash.
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