Suppose you have a part-time position over the winter break in a small clothing store that is part of the national chain.  The store's one full-time employee, with whom you have become friendly, hired you.  Explain what you would do in the situations described below, and identify two internal control problems that exist in each situation.  Each response must be analyzed, grammatically correct, and substantive.  (This means you probably will not do well with a one sentence response). 1.  You arrive at the store at 6 pm to take over the evening shift from the full-time employee who hired you.  You notice that this person takes a coat from the rack, puts it on, and leaves by the back door.  You are not sure if the coat is one that was for sale or if it belonged to the employee.   2.  You are the only person in the store on a busy evening.  At closing time, you total the cash register and the receipts and discover that the cash register is $20 short of cash.  You consider replacing the $20 out of your pocket because you think you make have made a mistake and are afraid you might lose your job if the company thinks you took the money.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Suppose you have a part-time position over the winter break in a small clothing store that is part of the national chain.  The store's one full-time employee, with whom you have become friendly, hired you.  Explain what you would do in the situations described below, and identify two internal control problems that exist in each situation.  Each response must be analyzed, grammatically correct, and substantive.  (This means you probably will not do well with a one sentence response).

1.  You arrive at the store at 6 pm to take over the evening shift from the full-time employee who hired you.  You notice that this person takes a coat from the rack, puts it on, and leaves by the back door.  You are not sure if the coat is one that was for sale or if it belonged to the employee.

 

2.  You are the only person in the store on a busy evening.  At closing time, you total the cash register and the receipts and discover that the cash register is $20 short of cash.  You consider replacing the $20 out of your pocket because you think you make have made a mistake and are afraid you might lose your job if the company thinks you took the money.

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