Claudia Chan is the controller at Sangood Kitchens, a large food and kitchen store. She recently hired Helen Smith as a bookkeeper. Smith wanted to attend a class on information systems, so Chan temporarily took over Smith’s duties, including overseeing a fund for giving in-store cooking and product demonstrations. Chan discovered a shortage in this fund and confronted Smith about it. Smith admitted that she occasionally uses the fund to pay for her own store purchases. Chan estimated that the amount involved is close to $500.
Requirements
1. What should Chan do?
2. Would you change your answer to the previous question if Chan was the one recently hired as controller and Smith was a well-liked, long-time employee who indicated that she always eventually repaid the fund?