The following is an excerpt from a conversation between two sales clerks, Tracy Rawlin and Jeff Weimer. Both Tracy and Jeff are employed by Magnum Electronics, a locally owned and operated electronics retail store.Suggest appropriate control procedures that would have prevented or detected the theft of cash. Tracy: Did you hear the news?Jeff: What news?Tracy: Bridget and Ken were both arrested this morning.Jeff: What? Arrested? You're putting me on!Tracy: No, really! The police arrested them first thing this morning. Put them inhandcuffs, read them their rights-the whole works. It was unreal! Jeff: What did they do?Tracy: Well, apparently they were filling out merchandise refund forms for ficti-tious customers and then taking the cash.Jeff: I guess I never thought of that. How did they catch them?Tracy: The store manager noticed that returns were twice that of last year andseemed to be increasing. When he confronted Bridget, she became flustered andadmitted to taking the cash, apparently over $15,000 in just three months. They'regoing over the last six months' transactions to try to determine how much Kenstole. He apparently started stealing first.

Internal control shields precious assets and upholds order like the defensive walls of a…

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