FollowDiscussion header $(2).$pngInternal Controls Over a Retail Store $-$ Bargain Big Box StoresBargain Box Stores has over $100$ stores located in the Southern United States from the East Coast to Texas. One store in a busy suburb of Dallas, Texas, recently closed. The store had been losing money for the past three years. The remaining inventory for the store had been divvied up and sent to other stores. Projections indicated that this should be a store that produced top sales numbers. You have been hired to review the stores numbers and procedures to determine why the store failed at that location. Bob, the internal auditor, has been assigned to help you. Bob informed you that in the average store, $50\%$ of the sales were made by cash, and $50\%$ were made with a credit card. Bob noted that in this store, the credit card sales were $75\%,$ and only $25\%$ were cash sales. Bob thought this was unusual and presented it to management, who then called you to help Bob dig deeper. Bob brought some store records with him to your first meeting. Bob noted that the daily bank deposits matched the daily net sales. This caused you both to look at gross sales. Bob spotted an anomaly in that the first receipt showed a refund of $$300.$ It seemed unusual to have a refund for such an exact amount. Further review showed that there were two more refunds for $$400$ and $$300$ in the same week. Within half an hour, you uncovered the scheme. Bob attempted to match the refunds on the cash register tape to the source documentation. There was nothingno documentation whatsoever. The thief had not even bothered to phony up refund slips. Then, you examined more tapes. By the time you looked at a few dozen, it was apparent what had happened: Each evening, just before closing all eight registers, someone would ring up a several$-$hundred$-$dollar refund on one, remove an equal amount of cash, and close out the register for the day. The amounts ranged from $$200$ to $$700.$You and Bob reviewed the entire list of Bargain employees. Anyone could have done it$,$ but only the manager seemed to fit. Bob informed you that the manager left the company to start her flower shop. The next day, you decided to visit the flower shop. The place was overflowing with flowers and gift merchandise. Indeed, the only thing missing that Saturday morning was customersexcept for a lone attendant, the store was empty.After contacting the police, you obtained the former managers bank records. There was a perfect match to the amount of the daily refund and the cash deposit into the managers bank account. Of the $$800,000$ stolen in three years, more than $$600,000$ found its way into the managers bank account. She had spent about $$400,000$ on the flower shop and the rest on living expenses, including a new car and home. You tried to interview the former manager, but she declined.The city prosecutor declined to press charges because there was insufficient direct evidence. The company did two things. It sued the manager in civil court and notified the IRS of possible tax fraud. The flower shop closed, and although the company received a favorable ruling, the manager had no money left. The IRS still has not taken action due to staff shortages. DISCUSSFrom your textbook review, the Elements of Internal Control, Discuss which elements were missing and, if implemented, could have prevented this theft. Be specific on your internal control recommendations.Do the elements of the Fraud Triangle apply in this case? Be specific in your discussions.How could the company have detected this fraud at the corporate level $($i$.$e$.,$ through reviewing reports be specific in your response.$)$