Jill has recently begun working at a local florist. In addition to creating floral arrangements, Jill spends

Question:

Jill has recently begun working at a local florist. In addition to creating floral arrangements, Jill spends a good deal of her time talking to customers and ringing up sales. Over time, she identifies a weakness in the procedures for ringing up voids. No approval is necessary to void a sale, and the void slip collects very little information about the sale. After Jill has completed a sale and the customer has left, she avoids the sale and pockets the cash that was just received. The floral shop doesn’t miss the lost inventory because it has a high and high losses due to flowers losing their bloom.
1. What type of fraud is Jill committing?
2. What could the florist do to prevent this type of fraud from occurring?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...