wing is an excerpt from a conversation between two sales clerk, Tracy Rawlin and Jeff Weimer. Both Tracy and Jeff employed by Magum electronics, a locally owned operated electronics retail store . Tracy: did you hear the news? Jeff: what news? Tracy: Bridget and Ken were both arrested his morning. Jeff: what arrested? You are putting me on! Tracy:No, really ! The police arrested then first thing this morning. Put them in handcuffs , read them their right the whole works. It was unreal! Jeff: what did they do? Tracy : well apparently they were filling out merchandise refund form from fictitious 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 and seemed to be increasing. When he c
wing is an excerpt from a conversation between two sales clerk, Tracy Rawlin and Jeff Weimer. Both Tracy and Jeff employed by Magum electronics, a locally owned operated electronics retail store . Tracy: did you hear the news? Jeff: what news? Tracy: Bridget and Ken were both arrested his morning. Jeff: what arrested? You are putting me on! Tracy:No, really ! The police arrested then first thing this morning. Put them in handcuffs , read them their right the whole works. It was unreal! Jeff: what did they do? Tracy : well apparently they were filling out merchandise refund form from fictitious 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 and seemed to be increasing. When he c
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following is an excerpt from a conversation between two sales clerk, Tracy Rawlin and Jeff Weimer. Both Tracy and Jeff employed by Magum electronics, a locally owned operated electronics retail store .
Tracy: did you hear the news?
Jeff: what news?
Tracy: Bridget and Ken were both arrested his morning.
Jeff: what arrested? You are putting me on!
Tracy:No, really ! The police arrested then first thing this morning. Put them in handcuffs , read them their right the whole works. It was unreal!
Jeff: what did they do?
Tracy : well apparently they were filling out merchandise refund form from fictitious 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 and seemed to be increasing. When he confronted Bridget , she became flustered and admitted to taking the cash , apparently over $ 15000 in just three months. They are going over the last six months transactions to try to determine how much Ken stole. He apparently started stealing first.
Suggest appropriate control procedures that would have prevented or detected theft of cash.
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