Mary Rel was hired as the new store manager for the Bargain Bin. The store used four

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Mary Rel was hired as the new store manager for the Bargain Bin. 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 $550.
■ 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, Mary was responsible for preparing the cash drawers for each shift. She decided to test the honesty of the cashiers, so she added an additional $50 to the beginning balance of one cash drawer. Mary planned to look at the shift cash form to see whether the cashier reported the extra $50 that was part of the beginning balance or just reported the $550 expected balance, taking the $50 for personal use.
Mary also tested her assistant manager. She gave him the bank deposit bag containing $5,246.24, but included a deposit ticket that was exactly $100 less, listing $5,146.24 as the deposit amount. Mary wanted to see whether the assistant manager would report the extra $100 in the deposit bag.
Mary 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
1. Should Mary distrust her employees? Is it ethical for a manager to test employees without their knowledge? Should Mary ever inform the employees that they had been tested? Was it unethical for Mary to test an assistant manager?

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0133052152

2nd edition

Authors: Robert Kemp, Jeffrey Waybright

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