Geoff works the late shift at Classic Movie Theatre. Occasionally Geoff must sell tickets and take the
Question:
Geoff works the late shift at Classic Movie Theatre. Occasionally Geoff must sell tickets and take the tickets as customers enter the theatre. Standard procedure requires that Geoff tear the tickets, give half to the customer, and keep the other half. To control cash receipts, the manager compares each night’s cash receipts with the number of ticket stubs on hand.
a. How could Geoff take money from the theatre’s cash receipts and hide the theft? What additional steps should the manager take to strengthen the internal control over cash receipts?
b. What is the internal control weakness in this situation? Explain the weakness.
c. What electronic device is often used at concerts and events to ensure legitimate tickets are presented by the patrons?
Step by Step Answer:
Horngrens Accounting Volume 1
ISBN: 9780136889373
12th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura