Jennifer Sims was hired as the new store manager for Bargain Hunter. The store used four cash registers, and 10 cashiers worked various shifts in the store. Store operations include the following procedures:

• At the start of each shift, a cashier counts the beginning cash balance in the drawer, which is supposed to be $600.

• At the end of each shift, the cashier does the following:

1. Counts the ending cash balance in the drawer and adds to it any amounts dropped in the safe.

2. Completes the shift cash form that reconciles the cash received to the total register sales tape.

3. Reports any difference between the cash on hand and the cash that should be on hand based on receipts.

As a manager, Jennifer was responsible for preparing the cash drawers for each shift. She decided to test the honesty of the cashiers, so she added an additional $25 to the beginning balance of one cash drawer. Jennifer planned to look at the shift cash form to see whether the cashier reported the extra $25 that was part of the beginning balance or just reported the $600 expected balance, taking the $25 for personal use.

Jennifer also tested her assistant manager. She gave him the bank deposit bag containing $5,246.24, but included a deposit ticket that was exactly $50 less, listing $5,196.24 as the deposit amount. Jennifer wanted to see whether the assistant manager would report the extra $50 in the deposit bag.

Jennifer planned to never let her employees or even her assistant manager know that she had tested them; instead, she would just say that she made a simple mistake in counting the cash if they questioned her.

Requirement

Should Jennifer distrust her employees? Is it ethical for a manager to test employees without their knowledge? Should Jennifer ever inform the employees that they had been tested? Was it ethical for Jennifer to test an assistant manager?