Richard Welsh is the controller at Sangood Kitchens, a large food and kitchen store. He recently hired Helen Smith as a bookkeeper. Smith wanted to attend a class on information systems, so Welsh temporarily took over Smith's duties, including overseeing a fund for giving in-store cooking and product demonstrations. Welsh discovered a shortage in this fund and confronted Smith on it. Smith admitted that she occasionally uses the fund to pay for her own store purchases. Welsh estimated that the amount involved is close to $500.
Requirements
1. What should Welsh do?
2. Would you change your answer to the previous question if Welsh 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?