Burlington Theatre is in the Burlington Mall. A cashier’s booth is located near the entrance to the theatre. Two cashiers are employed. One works from 1 to 5 p.m., the other from 5 to 9 p.m. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theatre manager at the beginning of each cashier’s shift. 

After purchasing a ticket, the customer takes the ticket to a doorperson stationed at the entrance of the theatre lobby some 60 feet from the cashier’s booth. The doorperson tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the doorperson.

At the end of each cashier’s shift, the theatre manager removes the ticket rolls from the machine and makes a cash count. The cash count sheet is initialled by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. In addition, the manager sends copies of the deposit slip and the initialled cash count sheets to the theatre accountant for verification and to the accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.  

Required

(a) Identify the internal control principles and their application to the cash receipts transactions of Burlington Theatre.

(b) If the doorperson and cashier decided to collaborate to misappropriate cash, what actions might they take?