45 45 Module 8 Discussion The following is an excerpt from a

45 45 Module 8 Discussion The following is an excerpt from a conversation between two sales clerks, 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 police arrested them first thing this morning. Put them in handcuffs, read them their rights-the whole works. It was unreal! Sara: What did they do? Jean: Well, apparently they were filling out merchandise refund forms for fictitious 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 twice that of last year and seemed to be increasing. When he confronted Neal, he became flustered and admitted to taking the cash, apparently more than $9,000 in just three months. They\'re going over the last six months\' transactions to try to determine how much Linda stole. She apparently started stealing first. Suggest appropriate control procedures that would have prevented or detected the theft of cash Post to the module discussion board and then reply to at least two of your classmates posts.

Solution

The appropriate control procedures that would have prevented or detected the theft of cash are mentioned below:

- Returns from a customer who has not been registered in the system while making a purchase should not be allowed.

- The physical inventory should be cross checked with the inventory present in the books.

-Refund should not be allowed to be made through cash. An electronic transfer should be used.

- An approval hierarchy should be created for approval of refunds.